Foreign exchange
India could allow foreign currency-rupee options by April
The Reserve Bank of India (RBI) could allow banks to offer foreign currency-rupee options to corporate clients by April, according to a bank official.
Morgan Stanley and Axa sued over CBO management
Jersey-registered collateralised bond obligation (CBO) investor Beaford is suing US investment bank Morgan Stanley and French insurer Axa, along with a number of its subsidiaries, for failing to properly manage three CBOs between 1996 and 2002. Morgan…
Japanese synthetic CDO market to see continued growth
Japan’s synthetic collateralised debt obligation (CDO) market is likely to continue to boom in 2003, according to a report published this week by credit rating agency Moody’s Investors Service.
SunGard snaps up Caminus for $160 million
Pennsylvania-based integrated IT service provider SunGard is to buy US energy software company Caminus for about $160 million in an all-cash deal. Upon completion – expected within two months – Caminus will become an operating unit of SunGard Trading and…
Sponsor's article > The role of correlation
David Rowe surveys recent research on the role of correlation between probability of default and recovery rates, as well as among default probabilities.
BofA becomes first Moody’s KMV CreditMark client
Bank of America (BofA) has signed up to a new product offered by credit risk management company Moody’s KMV, called CreditMark, which allows financial institutions to mark-to-market their corporate loans.
HSBC launches retail hedge fund in Hong Kong
HSBC Asset Management today launched its first fund of hedge funds product to retail investors in Hong Kong.
Measuring the operational risk of fund valuation companies
How can we model the losses due to operational risk in asset management? The loss process approach provides an answer specifically suited to this question for the fund valuation business and is in line with the work in progress of the Basel Committee on…
S&P exits data business with sale of ComStock to Interactive Data
Interactive Data Corp, a unit of UK media company Pearson, has agreed to buy Standard & Poor’s (S&P) ComStock for $115 million in cash, adding real-time market data to its stable of products.
McDonough bows out from New York Fed
William McDonough, president and chief executive of the Federal Reserve Bank of New York for the past 10 years, will retire on July 21 this year.
CreditTrade to supply benchmark data through Reuters
CreditTrade, the London-based inter-dealer broker and provider of credit derivatives data, has signed an agreement with Reuters, the UK information and technology group, to distribute CreditTrade's benchmark credit derivatives data via its screens.
Rogue trader Rusnak receives prison sentence
John Rusnak, the former Allied Irish Banks (AIB) trader responsible for $691 million in fraudulent losses related to yen-dollar currency forwards, has been sentenced to seven and a half years in prison.
Schroders to enter HK retail hedge fund market
Schroders Investment Management plans to launch its flagship fund of hedge funds products in Hong Kong, says Nicholas Chalmers, associate director in the alternative investment group at Schroders in Hong Kong. The move follows regulatory changes last May…
UK banking bodies expect further revisions to Basel II op risk plans
British banking industry bodies said in December they continue to expect that the operational risk aspects of the proposed Basel II bank safety accord will be revised in the light of banking industry experience.
Hedge funds provide poor stress-testing disclosure, says Iafe
Hedge funds offer poor stress-testing results and ‘greeks’ disclosure to third parties, according to a new survey by the International Association of Financial Engineers (Iafe).
Pension scheme re-alignment has no impact on financial risk, says actuary chief
The discontinuation of final salary pension schemes for employees will not, as many companies assert, reduce financial risk, according to Ronald Bowie, chairman of the pensions board of the UK Faculty and Institute of Actuaries.
New supervisory rules trigger alarm in Japanese banking system
The impact of a rigorous new Japanese bank inspection system is causing alarm at the country's banks, with many scrambling to shore-up fragile financial reserves ahead of its implementation in the next couple of months.
Regulators focusing on clearing and settlement risks, says Tower
Business continuity issues involved in the clearing and settlement process are becoming a focal point for regulators, according to a new report published by US consultancy, Tower Group.
IASB oprisk project shifted to new working group
The International Accounting Standards Board (IASB), the global accounting rules organisation based in London, released information on proposed changes to its risk disclosure standards in International Accounting Standard 32 (IAS 32) in December, after…
Regulators drive op risk innovation, says Meridien
Banks will need to step up their efforts to comply with the operational risk components of the revisions to the Basel Accords, says a new report from Meridien Research, a consultancy based in Massachusetts.
ABS market continues to grow despite volatility, says Moody's
Issuance in the US asset-backed securities (ABS) market reached $400 billion last year, with the market growing on average 26% annually since 1986, according to a new report issued by rating agency Moody’s Investors Services.
New supervisory rules trigger alarm in Japanese banking system
The impact of a rigorous new Japanese bank inspection system is causing alarm at the country's banks, with many scrambling to shore-up fragile financial reserves ahead of its implementation in the next couple of months.
Westpac launches CDO of CDOs
Australian bank Westpac has closed a $1.25 billion synthetic collateralised debt obligation (CDO) backed by a pool of structured finance transactions. The deal, arranged by JP Morgan Chase, is thought to be the first such structure issued in Asia-Pacific.
Reflated economy must be Japan’s priority, claims Moody’s
The outlook for Japanese sovereign debt would improve if the Bank of Japan (BoJ) took measures to reflate the economy, according to rating agency Moody's Investors Service. As the BoJ decides on a new governor to replace outgoing Masaru Hayami in March,…