Feature
Poor risk analysis weighs on Dutch disability market
After an overhaul of legislation in 2006, Dutch insurers eagerly tapped the occupational disability market. But they grossly underestimated the risks and costs of providing cover and have been forced to increase their reserves in response to higher than…
Supply glut heats up Vietnam coffee derivatives market
Overproduction and resulting lower prices could spur development of nascent sector
Risk management sweatshops? Number-crunchers move to satellite offices
From Berlin to Birmingham, from Tampa Bay to Dallas, banks have tried to boost their risk management resources – while keeping a lid on expense – by building teams in relatively low-cost cities. But do these far-flung offices improve performance? Joe…
Review of 2013: Grave new world
From collapsing equity repo rates to footnote 88, and from the leverage ratio to new clearing house liquidity rules, the year has been full of surprises, many of them unpleasant. By the end of 2013, an industry that had seemed to be back on its feet was…
Europe set for swap futures shoot-out
Up to eight venues are gearing up to launch interest rate swap futures in Europe – each with a different take on the product. What does the market make of their chances? Tom Osborn reports
Fear the repo: funds face up to rate-contingent liquidity risks
As interest rates rise, big fixed-rate receivers such as pension funds will all slide out-of-the-money at the same time, potentially triggering huge margin calls. Some are already trying to soften the blow, rather than relying on a repo market that could…
Exemptions in the balance as Volcker debate draws to a close
Two years on from its first draft, the Volcker rule is close to being finalised, but some regulators are still trying to close what they see as loopholes – and dealers see as vital freedoms
Asset reallocation predicted as Dutch life companies move to Solvency 1.5
Firms expected to reduce exposure to equities and buy protection in response to transitional solvency regime.
ROE hurdles cause pricing impasse
In the Basel III world, traders know their business must deliver a target return on equity, or risk being shut down – but working out the capital cost, or benefit, of a trade at inception is so difficult that banks only have approximations to guide them…
