Infrastructure
New year, new hope for euro corporate bonds
Now that issuers have woken up to the unpalatable truth that wide spreads are here to stay - for the short term at least - a mini-rally in European bond issuance has ensued. Laurence Neville looks at how the corporate bond market is adjusting to its new…
Counting on the counterparty
High-profile banking failures have led to uncertainty over the ability of credit derivatives counterparties to honour their side of the trade. Contingent credit default swaps, or CCDS, are designed to mitigate this risk. But will plans for a central…
The market-consistent value of liabilities and the credit crunch
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Portal combat
The first central clearing houses for credit default swaps were expected to start business at the beginning of December, but hold-ups in regulatory approval delayed the launch in the US. With four ventures now due to take off within months of each other…
Madoff fraud puts focus on due diligence
Several market players that had conducted due diligence on his firm told Risk that it had raised danger signals as far back as the late 1990s.
US muni debt now priced as riskier than corporates
Protection on US municipal debt is currently more costly than that on US investment-grade corporate bonds. Spreads on Markit's five-year MCDX index, which references credit default swaps (CDS) on municipal bonds, were at 275 basis points as of December…
Citi rings the changes in structured products reorg
Citi has announced a host of changes to its structured products business, including the appointment of Jean-Luc Bernardi as Emea head of structuring. Bernardi has developed and led the Emea Equity Derivatives Structuring Team since 2006 and will be…
Fed's near-zero target startles markets
Yesterday's news that the US Federal Reserve would cut its target fund rate to between zero and 0.25% rallied US stocks and sent Treasury bill yields to new lows.
BNP Paribas tempts French investors with latest Zanzibar fund
BNP Paribas has launched the latest version of its capital guaranteed Zanzibar formula fund, which offers investors a potential return of 20% over its two-and-a-half year life. Zanzibar 10 is linked to the performance of 20 major global stocks, banking…
New York Fed buys AIG assets at half price
The Federal Reserve Bank of New York has paid $19.8 billion to troubled insurer AIG for residential mortgage backed securities (RMBS) with a face value of $39.3 billion.
$2.1 billion loss ends 2008 on sour note for Goldman Sachs
Goldman Sachs has posted a $2.12 billion net loss for the fourth quarter - its first since going public in 1990 - citing "extraordinarily difficult operating conditions, including a sharp decline in values across virtually every asset class".
Mese pazzo
Turbolenza dei mercati
Opinioni assolutamente flessibili: tra teoria e pratica
Approfondimenti Investment Management
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Qualcosa si è inceppato
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Indubbiamente costosa
Raccolta bancaria
Add risk from spring 2009, Barclays Wealth
Investors should stay defensive in the short term, but add risk from spring onwards, says Barclays Wealth Signpost Annual Outlook, entitled 'A long, hard slog'. "We are looking to build overweights in investment-grade credit in Q2, and in equities from…
Global oil demand to slump
Global oil demand is set to fall this year and next, marking the first consecutive two-year decline in three decades, according to the Energy Information Agency (EIA).
UK pensions fell further into deficit in November
UK defined-benefit pension schemes are now £136 billion in deficit as of the end of last month, significantly worse than the £97.3 billion deficit at the end of October.
Auction sets 52.5% recovery on Masonite LCDSs
A final settlement value of 52.5% was set for loan credit default swap (LCDS) trades referencing first-lien loans to Ontario-based door manufacturer Masonite, during a cash-settlement auction held today.