Credit - Volume 9 / Issue 3
Articles in this issue
Bank results spark fears of further losses
European banks published their much-anticipated 2007 results in February, revealing the extent of the subprime crisis, and hinting at more trouble ahead
Driven to distress
One man's bankruptcy is another man's opportunity. Distressed debt funds, which profit from companies that are in financial trouble, have performed poorly in recent years. But with the effects of the credit crunch expected to hit corporate issuers in the…
Column – Nigel Rendell
Emerging markets, particularly China, may provide a welcome source of returns this year but investors need to watch out for the effects of any US recession on the sector.
Putnam Investments - A specialist approach
Putnam Investments is in the business of managing portfolios, but, curiously, it doesn't employ any portfolio managers. Instead, the firm has built a team of specialists that focus on specific sectors. Matthew Attwood talks to two lynchpins of the fixed…
Legal spotlight
The implications of Basel II on UK financial institutions have been far-reaching. Benedict James and Lisa Murray of law firm Linklaters look at banking books in the loans market
Market graphic - European high-yield default rate
Although the markets are pricing in a jump in this year's European speculative-grade default rate to 7.5%, JPMorgan Credit Research predict a more modest rise of 2.5%
Deals of the month
Unicredito Italiano and Dexia Group
Profile: Piero Bassu
The head of credit risk at UK mortgage lender Platform talks to Dippy Singh about portfolio consolidation and avoiding knee-jerk reactions to the credit crisis
After the storm
The structured credit market has been battered by recent events, with investors retreating to the high ground. But now that signs of calm are returning, what kinds of structures can investors look forward to? Hardeep Dhillon reports
Talking point - New securitisation markets
On the back of news that Japan is to securitise public sector receivables for the first time, we ask market participants about where they see development in new securitisation markets in 2008
Q&A: Samir Pandiri
Evaluating structured credit deals in the current environment is a challenge. The head of international corporate trust at Bank of New York Mellon talks diversity, independence and standardisation
Back to basics
We take you back to the credit basics to review everything you thought you already knew but were too afraid to ask... Teresa Callaghan, at credit management firm Transcom, looks at the debt sale market
CPDCs aim to lure structured credit-shy investors back to market
Credit derivative product companies, which offer counterparty protection against credit defaults, are looking to take advantage of wider CDS spreads to generate new business
Liquidity survey
Dollar investment grade
The end of the monoline?
Fears that monoline bond insurers would lose their triple-A ratings rocked global capital markets in February. As bankers, regulators and industry chiefs gawp at the cracks in the insurers' foundations, Daniel Andrews investigates where it all went wrong…
Banks slam structured finance accounting change
A revision in the way UK banks have to account for structured credit exposure has caused ripples in the market - at a time when financial institutions are crying out for a period of stability
US regulators turn their attention to negative equity
Rate cuts have alleviated worries about loan rate resets, only for a new concern to emerge
An industry in search of a silver bullet
ASF Conference
Improving outlook for covered bonds
Covered Bonds
How fair is fair value?
Accounting
From emerging to converging
Turkey
Bradford & Bingley upbeat but writedowns worry rating agencies
As banks report losses on their asset portfolios, concern from raters continues. Yet despite reports of an increase in mortgage arrears, B&B remains confident, especially in the buy-to-let market
The case for the defence
Although the smallest of the big three agencies, Fitch Ratings is often perceived as the one that reacts fastest to market developments. Sarfraz Thind talked to Glenn Costello, co-head of US RMBS at Fitch in New York
Primed to recover
Netherlands
Freddie Mac gives private insurers a helping hand
US mortgage agency relaxes criteria to help private mortgage insurers rebuild capital reserves
Liquidity or bust?
Regulation
Accidental heroes
IPD has grown to become the main index provider for property derivatives. The company's story points to some of the obstacles facing this developing market, writes Rob Mannix
Savings for the future
Deposits
Modelling default rate in a retail portfolio and the estimation of portfolio risk
Considering correlation as the major driving factor for portfolio risk, Farshad Mashayekhi and Joy Wang present a methodology for the estimation of correlation among retail exposures based on historical default rates in pools of retail accounts. The…
Pimco's head of MBS sees upside in illiquid markets
Value to be found in private label mortgage securities where liquidity premiums greatest, says key investor
A clearer picture
Fraud has gone to the top of the postmortem on the US subprime debacle. To detect and prevent it, more information at the loan level is needed, and the standardisation of data would also help investors in mortgage-backed securities make better decisions,…
Northern Rock nationalisation positive for bondholders
Holders of bonds issued by the Granite master trust will benefit from government ownership although questions remain over the vehicle's long-term future
