Credit markets
Fitch expects growing Chinese CDO issuance
Fitch Ratings said it expects more issuance of collateralised debt obligations (CDOs) from China in 2006, following the launch of the country’s first officially recognised CDO in December 2005.
Deciding on a future
A handful of companies are exploring how markets can improve decision-making, while academics are using futures trading to predict influenza outbreaks. Prediction markets have come a long way since the collapse of a controversial Pentagon-funded project…
Honesty best for preventing bank crises, report says
Ethics are far more important than economics in preventing bank crises, according to a report published today by Berlin-based corruption watchdog Transparency International.
The Basel II Race
Accessing operational risk is vital for any bank that wants to reach Basel II compliance.
The capital calculation question
Industry comments on Basel II have concentrated most on corporate credits. But the modelling of retail portfolio risk is a new field, and there is much greater scope for disagreement about how capital should be calculated.
A case for convergence?
With Basel II regulatory capital becoming increasingly more risk-sensitive, the value of a separate economic capital system must be questioned. Christopher Hall of Risk Advisors considers the differences between economic capital and regulatory capital,…
Know your market
Profile
Getting investors into the comfort zone
CDO equity
Introduction - New frontiers in credit
Rising energy prices have thrown the issue of credit into stark relief, and credit lines are being used up increasingly quickly. How should credit managers react?
Correlation - The energy price factor
Navneet Arora provides empirical evidence that significant correlations exist between the movements of commodity prices and the credit quality of firms in the energy sector
Credit - Energising credit
Traditional credit instruments can be used to mitigate credit risk in the energy sector, despite the unique risk management challenges, says Chris Coovrey
Patrick Brennan
NewFinance Capital's senior credit analyst in London explains the benefits of investing in credit via a fund of credit hedge funds
Building a future for Chinese securitisation
China's capital markets are hardly at the cutting edge of global developments: stifling state control and regulation have so far hindered the emergence of a securitisation market. But that may be set to change after landmark issues from two banks. Nadia…
Winner: Telefonica
Every month Credit recognises the most innovative financing solutions in the debt capital markets. This month Telefonica, Axa Investment Managers' Opus CDO I and Oracle Corp
ABS market welcomes synthetic index launch
The new ABX indices are based on the sub-prime home equity sector
Winter blues hit bond markets as investors get cold feet
Investors wary of LBO risk and shareholder-friendly activity have become more discriminating about new issuance
Market graphic - The argument for short mezz/long index
Anticipating a sharp correction to spreads over the next few years, Andrew Feldstein, senior portfolio manager at BlueMountain Capital Management, puts forward a case for a short mezzanine tranche/long index position
Securitisation market pulls together
Best Practice
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 ... Erwan Curien, head of the quantitative team at technology vendor Sophis, explains how credit default swaptions work