Crisis of correlation

Cover Story


The downgrade of Ford and General Motors (GM) to junk status by Standard & Poor's last month was widely anticipated in the credit markets. What was not understood – by most at least – was that the ratings action would prompt an unprecedented period of stress in the single-tranche credit market. Risk managers at some dealers, hedge funds and other investors were left reeling, with commonplace hedging and investment strategies suffering multi-million-dollar mark-to-market losses.

"To be frank

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here:

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: