Foreign exchange
US institutions take greater risks in convertible arbitrage
US institutions that invest in convertible securities, such as convertible arbitrage hedge funds, take more risks than their European counterparts, according to a research report published by US-based financial consultancy Greenwich Associates.
Bank of America traders launch forex hedge fund
Three senior forex traders from Bank of America (BoA) in New York last week launched Scalene Partners, a new intra-day forex hedge fund.
Mixed results for sales of SG's 'gemstones'
SG, the investment banking arm of French bank Société Générale, is seeing mixed results this year from its sale of equity-linked structured products to the European retail market.
Credit Markets Update: France Telecom fluctuates in thin markets
The cost of credit protection on troubled telco France Telecom fluctuated this week within a 100 basis point range, causing knock-on effects on the spreads of other European telecoms in jittery markets that saw little trading activity. But positive…
Confident regulators expect to issue upbeat Basel II statement next week
Global banking regulators are expected next week to make an upbeat statement on progress with the controversial Basel II bank Accord. This follows several months of uncertainty in which some bankers doubted the Accord would ever see the light of day.
Japan Credit Market Update: Recent volatility subsides into summer lull
Japanese credit default swap spreads were slightly wider this week, but the US July 4 holiday and the beginning of the summer kept the market largely subdued following recent volatility, dealers said.
Credit card capital charges will be lower under Basel II
Major banks will probably have to set aside a lot less capital as a cushion against losses from defaulting credit-card holders under the Basel II bank Accord than they do now, global banking supervisors said.
Australian structured finance market to pick up in H2, says Moody's
International rating agency Moody's believes the Australian structured finance market will pick up in the second half of the year following a drop in such deals during the first six months of this year.
French reinsurer Scor to return to credit derivatives market next year
French reinsurer Scor Group will come back to the credit derivatives market to offer protection by early next year, said the company’s chairman Jacques Blondeau.
Eurostat ruling likely to slow government securitisations
New rules issued on government securitisations late yesterday by Eurostat, the statistical body of the European Commission, could slow the sovereign securitisation market, according to industry participants. The rules, which cement the accounting…
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Speedwell Weather Derivatives
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CFTC approves use of single-stock futures
A significant barrier to the trading of single-stock futures (SSFs) in the US was removed late yesterday when US regulator the Commodity Futures Trading Commission (CFTC) approved final rules for the use of the instruments.
Germany drops objections to Basel II after SME solution
Germany lifted its objections today to the Basel II bank Accord, welcoming a compromise on lending to small businesses that will be discussed next week by global banking regulators.
Credit Markets Update: Vivendi protection costs surge
The cost of credit protection on French media company Vivendi Universal’s debt ballooned 500 basis points yesterday, with five-year bids hitting 1,200bp following downgrades from rating agencies Moody’s and Standard & Poor’s and the resignation of chief…
Merrill Lynch creates non-Japan Asia derivatives role
Merrill Lynch is creating a new position for its non-Japan Asia local currency foreign exchange and interest rate derivatives business to cater for client demand, a senior official said.
French delay on securitisation issue fuels bank concerns
The decision by the French banking regulator, Commission Bancaire, to delay issuing a clarification on a rule regarding the capital risk weighting to be applied to French securitisations, has caused concern among market participants.
CFTC approves FX anti-fraud rule
The US Commodity and Futures Trading Commission (CFTC) has approved a proposed National Futures Association (NFA) rule aimed at stemming fraudulent activity by smaller retail-oriented foreign exchange dealers.
Sharpe practice
Schroders' emerging markets Astra fund is aiming to achieve good returns with a Sharpe ratio of about one and two-thirds the volatility of its benchmark
Regulators grow confident about Basel II calendar
Global banking regulators were expected to issue an upbeat statement in mid-July on progress with the controversial Basel II bank accord after several months of uncertainty in which some bankers doubted the accord would ever see the light of day.