Credit markets
FGIC could be first to split
The monoline insurer Financial Guaranty Insurance Company (FGIC) might be the first to split its municipal bond business from its troubled structured credit arm.
Banks pack ailing debt into PDCF collateral
Investment banks could be getting rid of unsaleable high-risk loans by using them as collateral to borrow funds from the Federal Reserve through the primary dealer credit facility (PDCF).
Isda AGM: Regulatory scrutiny of derivatives likely, says Moulds
The derivatives industry faces a period of heightened scrutiny by regulators, mirroring the supervisory review in the wake of a series of mis-selling scandals in the 1990s, said Jonathan Moulds, president for Europe, the Middle East, Africa and Asia at…
Isda AGM: CDS boom continues
Volumes of credit default swaps (CDSs) traded rose 81% in 2007 to a total notional outstanding of $62.2 trillion, according to figures collected by the International Swaps and Derivatives Association (Isda).
Isda AGM: Calello urges industry to improve
Paul Calello, chief executive officer of investment banking at Credit Suisse, says all parties involved in the financial system – including regulators – need to take urgent action to combat potential systemic risk emanating from the ongoing credit crisis.
MBS capital charges coming soon in Basel II shake-up
Basel II capital requirements on structured credit products are to be raised as part of a wide-ranging review of risk management practices for financial institutions in G-7 nations, the Financial Stability Forum (FSF) has announced.
Wellink defends Basel II
Daily news headlines
Downgrades not the end of CPDO market
The last few months have seen massive downgrades of constant proportion debt obligations (CPDOs), but the worst could be over for the sector.
Retail investors hold key to Canadian ABCP restructuring
A vote on the Montreal Accord, the proposal to restructure C$33 billion (US$32.7 billion) of distressed non-bank Canadian asset-backed commercial paper (ABCP), is due on April 25. But with all votes counted as equal, satisfying the demands of…
Worldwide investment banking revenues down 45% for Q1
Global investment banking revenues plummeted to $12.5 billion in the first quarter of 2008, a 45% decrease over the past 12 months and down 42% from the end of 2007, according to a report published on April 2 by London-based data provider Dealogic.
Moody’s bids to improve RMBS process
As the US subprime mortgage crisis shows little signs of relenting and few new securitisations are coming to market, the process of identifying what went wrong and how future calamities might be prevented has commenced.
Flight to simplicity
Conference report: Spain
Essent Trading - Scaling barriers
In a frank appraisal of the state of energy trading in Europe, Essent Trading CEO Paymon Aliabadi tells Roderick Bruce about Essent's attempts to overcome the issues that still confront traders, and his vision for an integrated European market
The big freeze
The US subprime crisis has shown how market illiquidity can affect trading. Yet liquidity risk is a fact of life for commodity firms. William Rhode looks at how to mitigate it
Suppliers fight for green
A shortage of green power in the US has left some states struggling to meet mandatory renewables supply targets. Long-term supply contracts could help producers build new plants, but utilities and competitive suppliers are feuding over who gets to sign…
Valuing CDOs of ABSs
Charles Smithson and Neil Pearson discuss the valuation of collateralised debt obligations (CDOs), with a close look at CDOs of subprime residential mortage-backed securities
Credit tighter for certain
Opinion
More RMBS downgrades possible, warns Standard & Poor's
Rating agency simulations highlight that next 18 months could see ratings cuts and house prices fall
Turning on tables
Basel II
Liquidity at a premium
Opinion
Europe's mixed fortunes
Opinion
Central banks pull together for second co-ordinated bailout
Banks launch another set of emergency auctions in reaction to ongoing liquidity pressures