Infrastructure
Proxy-hedging problems
Taiwanese insurers
JP Morgan CDS exposure could top $10 trillion
JP Morgan’s proposed acquisition of Bear Stearns could push the bank’s already formidable footprint in the credit default swaps (CDS) market through the $10 trillion notional barrier, raising questions over the prudence of such large concentrations…
Wheels fall off LiquidityHub
London-based liquidity aggregation platform LiquidityHub stopped operating last week, having endured a lack of market interest in the face of the credit crunch.
SEC chairman backs update to liquidity guidelines
Daily news headlines
JP Morgan raises Bear Stearns offer to $1.18 billion after shareholder unrest
JP Morgan has raised its proposed purchase offer for Bear Stearns to $10 a share in a move designed to assuage the anger of Bear shareholders incensed by JP’s initial offer of just $2 a share.
Meteor launches product offering 10% income
Meteor Asset Management (MAM) has launched the Solar Income Plan, a five-year product based on five major UK banks: Barclays, HBOS, HSBC, Lloyds TSB and RBS. The plan offers a fixed income of 10% per year or 0.8% per month. Capital is returned in full,…
JP Morgan buys Bear Stearns after receiving Fed guarantee
JP Morgan, the middleman in the Federal Reserve's discount-window attempt to prop up Bear Stearns on Friday, will buy the troubled bank at a knockdown price.
Bank writedowns - is the worst over?
The credit crisis that has roiled the financial markets has wiped out massive amounts of value from banks' balance sheets, resulting in crippling losses for some banks. Most recently, HSBC announced a 79% rise in loan impairment charges and credit risk…
Crude Oil surges to $107
The New York Mercantile Exchange (Nymex) benchmark oil contract has exceeded $107 per barrel in midday trading as the value of the US dollar continues to plunge
Crude rally continues as analysts eye $115 oil
West Texas Intermediate (WTI) crude for April delivery surged to over $105/bbl on Thursday as analysts questioned how much longer the rally could continue.
Banks relied too much on ratings, supervisors say
Regulators from France, Germany, Switzerland, the UK and the US say banks that suffered serious losses during the credit crisis often did so because of avoidable failures in risk monitoring and management.
UBS offers food index for structured products and ETCs
UBS has announced the launch of the UBS Bloomberg CMCI Food Index which will be available through a variety of funds, exchange traded commodities and UBS structured products. The index is available in US dollars, euros and Swiss Francs and covers 13…
UBS and Bloomberg launch CMCI Food Index
The new UBS Bloomberg CMCI Food Index provides direct exposure to the food sector.
World Bank group launches Cat DDO
The International Bank for Reconstruction and Development (IBRD), part of the World Bank, has announced a new loan facility designed to provide emergency finance for middle-income countries suffering natural catastrophes.
Copula modelling
Using copulas and Monte Carlo simulations to model price dependencein energy markets, Vincent Grégoire, Christian Genest and MichelGendron show how forecasts for crude oil and natural gas prices can beimproved by modelling the dependence between them
Commodities offer alpha win
commodities
FFAs: rocking the boat?
The Baltic Dry Index (BDI) plumbed the depths in early 2008, sinking from record highs in late 2007. Some have blamed derivatives market activity for the sharp fall. Roderick Bruce casts a beady eye over the BDI and asks where prices are heading next
Waiting in the wings
The long-mooted inclusion of the aviation sector in the European Union's emissions trading scheme is finally on the radar screen. Roderick Bruce discovers whether stakeholders are ready for take off
The prepay delay
Municipal natural gas prepayment deals withered in the second half of 2007 as a result of the credit crisis. While this year has seen a trickle of new deals, greater problems may be lurking. David Watkins reports
A changing carbon market climate
The EU Emissions Trading Scheme is stepping up a notch with a batch of new measures for its Third Phase. Andrew Holt finds out what carbon market participants think of the new proposals