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Sunk by correlation

Equity derivatives dealers faced a grim picture across global markets earlier this year, with steep rises in correlation and volatility together with a slump in dividend expectations decimating exotic books. How have dealers responded? By Mark Pengelly

Risk reallocation

The originate-and-distribute model offered a means for banks to offload credit risk from their balance sheets and distribute it to investors. But Andrew Haldane and Lewis Webber of the Bank of England argue this risk was often passed on to those least…

Abbey launches Capital Guaranteed products

Abbey has launched two capital guaranteed products including the third issue of its Guaranteed Capital Plus plan, linked to the FTSE 100 index. The three-and-a-half-year plan returns 18% if the FTSE 100 has risen by at least one point during the term, or…

BNP Paribas takes two from Bear Stearns

BNP Paribas has scooped up two new hires from Bear Stearns. Andrew Miller and Adam Brodnicki have been appointed as directors in the French bank’s New York fixed income team, where they will be responsible for FX, rate and structured products for…

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