Credit markets
CDS market soars but equities shrink in late 2007
The credit default swap (CDS) market grew at record rates in the second half of last year, but equity derivatives shrunk for the first time since 2004, according to figures released today by the Bank for International Settlements (BIS).
Credit Suisse unveils hedge fund replication index
Credit Suisse has launched a new long/short equity replication index. The index is the first in the Alternative Index Replication (Air) product series, and is designed to replicate the performance of hedge fund strategies.
Markit's Red now free to low-volume buy-side firms
London-based data provider Markit has created a free licence for the Markit Reference Entity Database (Red), aimed at smaller buy-side firms.
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Mexico
Swiss Re loses another SFr819 million on two CDSs
Zürich-based reinsurer Swiss Re announced it had booked a mark-to-market loss of SFr819 million ($781 million) on two portfolio credit default swaps (CDSs) in its first-quarter results on May 6, and warned that it was likely to lose another SFr200…
Finance and banking dominate April US CDS trading
The banking and financial services sectors dominated trading volumes of credit default swaps (CDS) in the US in April, according to GFI, a New York-based interdealer broker. The most actively traded names were Washington Mutual, Lehman Brothers and…
Fed ramps up bank support to $75 billion
The US Federal Reserve has increased the scale of its Term Auction Facility (TAF), intended to provide extra liquidity in the securities market, and has relaxed its criteria for collateral in another support, the Term Securities Lending Facility (TSLF).
Moody’s: South African securitisation at turning point
South African securitisations are deteriorating but their ratings remain secure for now, according to New York-based Moody’s Investors Service.
Regulators push for operations changes
The derivatives industry faces regulatory demands to improve operations issues. In recent weeks, both the President’s Working Group on Financial Markets (PWG) and the Financial Stability Forum (FSF) have pushed dealers to enhance the infrastructure for…
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GSEs
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Commercial Property
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 ..
The ABX index: A pricing conundrum
The liquidity crisis in the ABS market has led to investors using the ABX index as a valuation tool for individual securities - something the index was never designed for. Ben Logan explains the ramifications of this valuation practice
The squeeze is on - The clampdown on CDO ratings
The rating agencies have faced a barrage of criticism over their role in last year's subprime meltdown. This year they have been focusing on ensuring that a repeat of the ABS problems do not occur in other segments of the structured credit market. But…