Credit - 2008-02-01
Articles in this issue
MPs urge reform of UK financial regulation
Treasury Select Committee criticises current 'tripartite' system of regulation for its failings in the Northern Rock crisis, and recommends shift of power to Bank of England
Q&A: Intellectual property securitisation
Intellectual property securitisation, where the intrinsic value of a brand or copyright is released via the issuance of debt, can be costly but the interest savings over the life of the deal are attractive, explains the global co-head of securitisation…
Herd mentality
The unbridled success of the credit derivatives market over the past few years - until last summer, that is - had led large numbers of investors to adopt similar positions in the sector. Such risk concentration was always likely to cause problems if the…
Barclays Capital launches quant index family
The three new sets of indices - total return, steepener/flattener and alpha strategy - are based on existing CDX and iTraxx indices and enable investors to take quantitative views on the market
Talking point - Investment-grade bond covenants
Following the release of a white paper by a group of 50 buy-siders proposing an overhaul of existing covenants, we ask market participants whether investment-grade bond covenants need improving
Legal spotlight
The structured credit market is facing a new paradigm as we emerge from the credit crisis. Angus Duncan and Robert Cannon look at the kind of structures we can expect to see in 2008
Leveraged loans: Clearing the backlog
While LBO bankers in the US are chipping away at the backlog of deals, Europe seems unable to shift its overhang. Daniel Andrews looks at how differences in the way the two markets have evolved are affecting their chances of tackling the problem
Column: Nigel Sillis
An anomaly in S&P's CDO Evaluator would have us believe that a AAA rated CDO is more likely to default than a AA+ corporate - fine in today's market, not so good in theory
Column: Andrew Kasapis
Our new columnist suggests three trading strategies that might reap rewards this year
Fitch Ratings closes derivatives spin-off as agencies count the cost of slowdown
Derivative Fitch, launched to much fanfare just over a year ago, has been rolled back into the parent company in response to falling revenues from derivatives and structured credit
Market graphic - Recessionary pricing
The effects of a US recession on Europe are hard to quantify, but European spreads are already pricing in a mild recession, according to JPMorgan Credit Research. Is this enough?
The Big Interview: Tim Congdon
The founder of Lombard Street Research and respected economist discusses the precedent for last summer's crisis with Matthew Attwood, and explains how policymakers are damaging the market
Drying up down under
Liquidity in Australia's nascent structured credit market has suffered as a result of the subprime squeeze, leading to an inevitable bout of finger-pointing. Marion Williams reports
Sovereign wealth saviours
The financial markets have found their new superhero. With major investment banks on their knees after whopping subprime-related writedowns and liquidity in the bond markets severely affected, the arrival of sovereign wealth funds, with their groaning…
Profile: Matt Cairns
The senior European economist at Moodyseconomy.com, part of Moody's Analytics, talks to Matthew Attwood about the macro trends that define his business
Nirvana for some
Commercial property
Sweet release
Equity release
Improvement in ABCP outlook sparks hopes of recovery
A pick-up in the issuance of asset-backed commercial paper is being seen as a sign that the market is near or at the bottom, although European observers remain cautious
Next big hurdle looms for Sivs
Structured investment vehicles face the prospect of refinancing $170bn of medium term notes
Market mulls implications of Northern Rock rescue plan
While some welcome any initiatives to reopen the securitisation market, others question whether the government's guarantee gives the lender an unfair advantage
Joined-up thinking
Platform's Piero Bassu tells Dippy Singh how keeping an eye on all aspects of risk has stood the subprime lender in good stead while its less disciplined peers have foundered
Steward's enquiry
Hermes' David Pitt-Watson gives an owner's perspective on the troubles at UK lender Northern Rock, and details the changes he believes would prevent a repeat of the credit crunch in future. Interview by Rob Mannix
Interest rate risk of mortgage servicing rights
Dick Boswinkel and Kent Westerbeck examine the behaviour of mortgage servicing rights' duration and convexity and explain how they relate to the prepayment assumptions used in valuing MSRs
A unifying approach
Economic Capital
Up for grabs
M&A
Shinsei launches 'hybrid' bond
Japanese bank's first covered bond is deemed riskier than its European counterparts
Rocked to the core
Comment
Joint efforts pay off
Central banks
