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Credit markets

Falling short of the mark

Financial institutions have struggled to develop operational risk frameworks that will improve business decisions and optimise their use of economic capital. And a new study indicates that op risk is now increasingly viewed as yet another compliance…

Demanding disclosure

The dislocation in the correlation markets in May confirmed supervisors' fears about concentration risk in the hedge fund sector. And this is fuelling pressure for hedge funds to make more data disclosure. But how would this help to reduce risk? By…

The CRO road

Some of the larger hedge funds have set up formal risk management functions, appointing independent chief risk officers (CROs) to oversee their business. But what role should a hedge fund CRO play, and are these appointments a precursor of wider changes…

Auto CDS trades still dominate US market

The US credit default swap market continues to be dominated by contracts based on the debt protection of automobile and auto parts manufacturers, indicating the unpheaval caused by the downgrades of Ford and GM in May have not yet died away.

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