Foreign exchange
Isda AGM: 94% of world's largest corporates use derivatives
Ninety-four per cent the world's largest corporates use derivatives to hedge their business and financial risks, according to a survey of the Fortune Global 500 companies by the International Swaps and Derivatives Association (Isda), released at its 24th…
UK guarantees AAA RMBS in bid to jump-start lending
The UK government has launched a scheme to guarantee up to £50 billion in residential mortgage-backed securities (RMBS) for the first time, finance minister Alistair Darling said yesterday.
Isda AGM: US regulator identifies six weaknesses in OTC market
Theo Lubke, senior vice-president at the Federal Reserve Bank of New York, identified six main problem areas in the over-the-counter derivatives market during a panel discussion on public policy at the International Swaps and Derivatives Association's…
Trading and technical gains outweigh loan losses in Q1
Strong trading results have offset large loan losses as banks report a mixed bag of first-quarter results.
S&P offers interest rate arbitrage indexes
Index provider Standard & Poor's has launched the S&P Forward Interest Rate Arbitrage Index series, which is designed to provide exposure to interest-rate based investment strategies. The index series, which will comprise indexes for seven countries…
Isda AGM: Collateral use continues to rise
Over-the-counter derivatives traders have increased their use of collateral by 86% in the past year, according to a survey of banks and institutional investors released today by the International Swaps and Derivatives Association.
Isda AGM: Derivatives post-trade processing improves
The International Swaps and Derivatives Association (Isda) says post-trade processing has continued to improve over the past year, with lower numbers of confirmations outstanding and higher levels of automation.
Goldman advocates carry trade; analysts disagree
Background conditions might be improving for the carry trade, but investors are still too wary to return.
Isda AGM: trillions in derivatives torn up since June
Multilateral tear-up efforts continue to bear fruit, with notional outstanding reduced by several trillion dollars, according to a report released by the International Swaps and Derivatives Association at its annual general meeting in Beijing.
PPIP participants possibly exempt from compensation limits
Asset managers that participate in the Public Private Investment Program (PPIP) with the US Treasury will probably be exempt from executive compensation limits imposed on private entities that have accepted government bail-out funds, Treasury secretary…
Credit Suisse agrees to compensate Lehman product investors
Credit Suisse has agreed to pay compensation to a further 1,700 clients who invested in Lehman Brothers capital protected products. The Swiss bank, as a gesture of goodwill and without acknowledging any legal obligation, reached an agreement with the…
US Treasury failing on Tarp oversight, report finds
The US Treasury's $700 billion Troubled Asset Relief Program (Tarp) is vulnerable to fraud, abuse and profiteering, due to a lack of proper supervision, according to a highly critical report from the programme's inspector-general published today.
CIMB launches China recovery structured fund
CIMB-Principal Asset Management Berhad has launched its China Recovery Structured Fund, which aims to provide exposure to China equity and take advantage of the possibility of an economic recovery in China over the next five years.
TriOptima targets swaps tear-up for mainland China and Taiwan
Swedish post-trade services group TriOptima plans to launch renminbi and new Taiwan dollar interest rate swaps (IRS) termination services in the second half of this year. The company currently offers its services across 19 currencies, including seven…
SG CIB tries to fix variance swap flaws
In the wake of hefty losses for sellers of variance swaps as volatility spiked last year, Société Générale Corporate and Investment Banking (SG CIB) is touting products that might make selling variance more palatable for investors.
Liquidity regulation to cost £700 million and 15 man-years of work
Daily news headlines
First cleared iron ore swap on Singapore Exchange
Singapore Exchange (SGX) will launch the world's first cleared iron ore OTC swap contract on April 27 th .
Short-selling ban increased volatility more than credit crisis
The bans on short selling imposed in the US and Europe in 2008 had more effect on market volatility in off-limit stocks and equity markets than the financial crisis itself, a new study has concluded.
JP Morgan investment banking reports record profits
Today, JP Morgan reported that it earned $2.14 billion in the first quarter of 2009, a decline from the corresponding period last year when it saw a net income of $2.4 billion.
US Wrap: Easter money is on US equity alongside rare commodity note
There were 15 new issues in the US market over the Easter period, with all but one offering exposure to US equity. New launches since last Thursday included a mix of reverse convertibles and accelerated growth or kick out structures linked to the S&P 500…
HKMA ring-fenced assets before Lehman collapse
The Hong Kong Monetary Authority (HKMA) had identified 19 foreign banks whose financial health could have had a negative impact on the Hong Kong banking system before the collapse of Lehman Brothers in September last year.
UBS continues losing streak into Q1
UBS will make a SFr2 billion ($1.75 billion) loss for the first quarter of 2009, the firm's chief executive, Oswald Grübel, predicted at the bank's annual general meeting in Zurich on April 15.
Warsaw targets structured products with new index
The Warsaw Stock Exchange (WSE) has launched leveraged and short versions of the Wig20, with the latter specifically targeted at structured products providers. The exchange is now offering double exposure to the Wig20, alongside the short index which…