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Infrastructure

Clearing the way ahead

The major credit derivatives dealers, along with the Clearing Corporation, are working to develop a central clearing house for over-the-counter credit derivatives trades. How will this initiative work, and are there are any rival schemes in the pipeline?…

Broaden valuation options

In the same way credit risk managers used to question how a loan would be repaid if the primary means of payment were to fail, so banks ought to ask if there is another way to value structured credit investments if market liquidity were to dry up, argues…

Central clearing house becomes a reality

Clearing Corporation, a Chicago-based clearing house, and the New York-based Depository Trust and Clearing Corporation (DTCC) will launch central counterparty clearing services for a range of over-the-counter credit derivatives in the third quarter.

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