Credit markets
European bank CDS spreads tighten
The cost of credit protection on European financial institutions dropped in early trading today.
Ted spread falls further
The Ted spread and three-month Libor continued to fall following last week’s bailout packages announced in Europe and the US.
Interbank lending eases further
The Ted spread, along with overnight and three-month Libor, fell for the fourth day in succession after European governments announced bailout packages on Monday, and the US followed suit on Tuesday.
Q & A: CESR chairman Eddy Wymeersch
Eddy Wymeersch, chairman of the Committee of European Securities Regulators (CESR), talks to Risk about the effects the financial crisis will have on regulators and central banks.
CDS spreads stabilise in Europe and the US
The cost of credit protection on European financial institutions stabilised in early trading today, after a tumultuous week that has seen governments in the UK, Germany, France, Spain and Switzerland announce major bailout packages for major financial…
Citigroup and Merrill Lynch losses soar in Q3
Hit by continuing credit problems and mortgage-related losses, Citigroup and Merrill Lynch saw their profits fall sharply in the third quarter of 2008.
Banks move towards clearing for FX, interest rate and equity
A large part of the over-the-counter derivatives market will shift towards central clearing houses by next year, as the collapse of Lehman Brothers on September 15 forces banks to reassess counterparty risk posed by other dealers.
CDSs on US banks and insurers widen again
A day of turmoil on the world stock markets saw the cost of credit protection for several US banks and insurers rise once again.
Interbank lending rates continue to fall
The Ted spread, along with overnight and three month Libor, continued to fall today in the wake of European governments announcing bailout packages on Monday, and the US following their example on Tuesday.
Swiss National Bank to take $60 billion in UBS assets
The Swiss government has stepped in to rescue UBS, the European bank worst hit by the subprime crisis.
Strain eases on interbank lending
The Ted spread, as well as overnight and three-month Libor, continued to fall today following the announcement of US and European bailout packages.
CDSs tighten on US banks
The cost of credit protection on US institutions plummeted yesterday, as investors reacted positively to news that the Treasury will take $125bn equity in nine US banks.
European CDSs at monthly lows
A surge in market confidence lowered the cost of credit protection on a number of European banks to monthly lows in early trading today, as investors reacted positively to news of a eurozone financial rescue plan.
Governments step up and Ted spread goes down
The Ted spread, the difference between US Treasury bills and three-month Libor, fell today for the first time since October 6, following the news of the planned European bank rescue package.
UK CDSs fall as markets surge
The cost of credit protection on UK banks fell in early trading today, with investors reacting positively to the government's announcement it would inject a total of £37 billion into Royal Bank of Scotland (RBS), HBOS and Lloyds TSB.
Ted spread rises and Libor rates drop across the board
Perceived counterparty risk in the financial system reached new heights today as the Ted spread, the difference between three-month Libor and US Treasury bills, opened at a record 4.64%.
$700bn Tarp might only take equity in healthy banks, hints US Treasury
As well as buying up mortgage-backed securities, the US Treasury’s $700 billion rescue facility - the Troubled Asset Relief Programme (Tarp) will be used to buy equity in a variety of financial institutions. However, Tarp will be "designed with…
FSF releases update on April recommendations
The Financial Stability Forum (FSF) – - on October 10 released a follow-up to its April white paper, Enhancing Market and Institutional Resilience.
Lehman’s CDS mess
Editor's blog
Lehman’s CDS mess
Editor's blog
Ted spread continues to rise as markets fall
The daily record-breaking climb of the Ted spread, an index which tracks the difference between three-month Libor and US Treasury bills, continued today as world stock markets plummeted.
Goldman equity tanks as fears grow over Morgan Stanley
Shares in former investment banks Goldman Sachs and Morgan Stanley have slid today during volatile trading, despite credit default swap (CDS) spreads on the two firms marginally narrowing .
Fed discusses CDS clearing house options
The Federal Reserve Bank of New York is today in discussions with interested parties over the establishment of a central clearing house for credit default swaps (CDSs).
Lehman recovery rate set at 8.625%
A final value of 8.625% was set on the bonds of Lehman Brothers today, in an auction intended to cash-settle credit default swap (CDS) trades linked to the toppled dealer.