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Mastering the storm

The succession of credit events in September and October revealed that many investors did not know what to do in the event of a default of a counterparty. What recourse do parties have under the Isda master agreement? By Joshua Cohn and Jillian Ashley

A time for special FX

Dealers are beginning to think a lot more seriously about credit-adjusting the prices they quote on foreign exchange derivatives. How are they calculating this, and how are clients responding to the move? By John Ferry

Gambling on dividends

Dividends have caused sizeable losses for dealers and investors over the recent months, as a precipitous fall in expectations has hit structured product issuers and those who participated in dividend swaps. Mark Pengelly investigates

Rainy day funds

Exchange-traded funds (ETFs) have continued to gain traction in South Africa despite roiling markets. As a result, local ETF providers are extending their reach to new investors and asset classes - with some even looking to introduce exchange-traded…

Adapt or fail

Since October last year, ructions in South Africa's foreign exchange rate have caused offshore hedge funds to exit the market, while dealers have been reluctant to take on risk. Those that remain active have had to adapt their behaviour as a result. By…

Sovereign hedging lessons

The big oil-hedging losses at Sri Lankan state-owned refiner Ceylon Petroleum Corporation provide another salutary lesson in the proper use of derivatives. Is the situation reflective of state-owned energy companies as a group? By Joe Marsh

Clear benefits

The role of central counterparties is being given increased prominence in the over-the-counter markets, with regulators calling for clearing houses for credit derivatives. But how do central counterparties manage their risks? By Clive Davidson

Capital Smorgasbord

Questions are being asked about the level of capital held by banks, after the financial crisis forced governments across the world to make emergency capital injections. Will this change what qualifies as tier-one and tier-two capital? By Duncan Wood

Long overdue

New due diligence and risk weighting guidance for resecuritisations aims to prevent a repeat of the credit crisis, but should these measures have been included in the 2006 version of Basel II? By Peter Madigan

Contract counterattack

Efforts to recover the value of nearly 200,000 derivatives transactions conducted with Lehman Brothers have been frustrated by a provision of the International Swaps and Derivatives Association master agreement. But the bankrupt estate is fighting back…

Challenging times for VAR

With the release of three new consultation papers in January, the Basel Committee has come up with its most ambitious plans yet for tackling the challenges presented by the financial crisis. But its proposal to overhaul VAR models is coming in for some…

Where rocky horror assets go

With injections of government capital seemingly having little effect on restoring confidence in ailing banks, thoughts have once again turned to quarantining distressed assets. Rob Davies examines the options available to policy-makers

The short story

The UK Financial Services Authority ended its ban on short selling of financial stocks on January 16. How have financial stocks performed since the restrictions were lifted? Christopher Whittall investigates

Plugging the gaps

The various post mortems into the causes of the financial crisis have highlighted weaknesses in bank risk management practices. In particular, many banks approached risk on a silo basis, with little attention given to firm-wide exposures. Are banks…

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