Infrastructure
Fed to lend additional $37.8 billion to AIG
The US Federal Reserve has stepped in again to help troubled insurance company American International Group (AIG), authorising the Federal Reserve Bank of New York to borrow up to $37.8 billion in investment-grade fixed income securities from AIG in…
Pimco in frame to run commercial paper purchase facility
The Federal Reserve Bank of New York has confirmed it is in talks with California-based bond fund Pimco to manage the government’s new commercial paper purchase facility (CPFF).
CME and Citadel plan CDS exchange
Chicago-based exchange operator CME Group and hedge fund management firm Citadel Investment Group are set to launch a fully integrated trading and clearing platform for credit default swaps (CDSs).
Hong Kong Minibond distributors may buy back products
Hong Kong distributors, which sold Lehman Minibonds to retail investors, could possibly buy back the products at the prevailing market price under a proposal put forward by the Hong Kong financial secretary. Under the proposal the trustee of the…
TriOptima reconciling 50% of collateralised OTC derivatives
Swedish technology company TriOptima’s portfolio reconciliation service, TriResolve, now reconciles more than 50% of all collateralised over-the-counter (OTC) derivatives transactions globally, up from 40% in June.
Fed to treble lending
The Federal Reserve increased its Term Auction Facility (TAF) auctions by $300 billion on Monday, and expects its lending to reach $900 billion by November; three times the amount of liquidity provision given to date.
Auction determines settlement price for Fannie and Freddie
An auction to determine settlement prices on credit derivatives referencing Fannie Mae and Freddie Mac took place yesterday, making it by far the largest credit event fixing to have taken place since the process was first introduced in 2005.
Fannie and Freddie auctions raise questions about CDSs
The settlement prices on credit default swaps (CDSs) linked to Fannie Mae and Freddie Mac, determined at an auction yesterday, were heavily influenced by technical factors and raise questions about the efficacy of credit derivatives as a hedge, claim…
US agrees $700 billion bail-out
Daily news headlines
LCDX index roll postponed indefinitely
London-based data provider Markit is postponing the roll of its LCDX index of 100 North American loan credit default swaps (LCDSs) until negotiations for a new single-name US LCDS contract are finished.
Iosco group to turn spotlight on commodity markets
The US Commodity Futures Trading Commission and the UK Financial Services Authority are to lead a new international regulators' group overseeing the commodity markets.
The FX effect
US bond funds that invest in international assets have seen their returns hit by the recent rally in the US dollar. Dalia Fahmy looks at how fund managers are trying to insulate themselves from exchange rate movements and gauges market opinion on which…
Column: Nigel Sillis
Labour costs are rising even though labour is no more scarce. How is this happening?
Editor's letter
Comment
Don't bet on the bank
The failure of a major investment bank. The bailout of the US mortgage agencies. The rumoured demise of further financial institutions. Now does not seem like the ideal time to be investing in the financials sector. Or does it? Laurence Neville reports
Market Graphic: What drives Russian bond spreads?
Market graphic
Chaos theory - Why a little instability might be no bad thing for the future of the credit market
The recent history of the financial markets has been a story of cheap and widely available credit and advances in risk management techniques that have enabled investors to accurately price - in theory, at least - a book of risks. David Boorer of Northern…
Back to basics
We take you back to the credit basics to review everything you thought you already knew but were too afraid to ask... Michael Thompson of Standard & Poor's looks at factors influencing the credit crisis
A Proactive approach
Portfolio reconciliation
Clearing a path to lower op risk
Counterparty risk
Konrad von Habsburg
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