Structured products
Dead in the water?
Basel II
Rainy day funds
Exchange-traded funds (ETFs) have continued to gain traction in South Africa despite roiling markets. As a result, local ETF providers are extending their reach to new investors and asset classes - with some even looking to introduce exchange-traded…
Regulatory wrangling
Structured products
Long overdue
New due diligence and risk weighting guidance for resecuritisations aims to prevent a repeat of the credit crisis, but should these measures have been included in the 2006 version of Basel II? By Peter Madigan
Swiss exchange launches collateral option to bolster market
Swiss structured product providers will now be able to collateralise the listings that they trade on Scoach, the national exchange. Providers have responded positively to the initiative, which may provide a much-needed boost to the Swiss structured…
US Wrap: Flows stabilise as Deutsche Bank broadens US equity exposure
Seven issues were added to a consistent week of issuance yesterday. Alongside the staple of S&P 500-linked products, Deutsche added a broader slice of US equity exposure, with an accelerated growth product linked to the Russell 2000 index, the S&P 400…
FDIC: 252 US banks now at risk
The US Federal Deposit Insurance Corporation (FDIC) now has 252 banks on its "problem list", and the industry has dipped into the red for the first time in almost two decades.
Fannie Mae hit by $25.2 billion loss in Q4
Government sponsored entity (GSE) Fannie Mae announced losses of $25.2 billion for the fourth quarter of 2008 yesterday, linked to mortgage defaults, falling home prices and ailing credit markets. The poor showing was driven by $12.3 billion in net fair…
US government to own 36% of Citigroup
The US government's stake in Citigroup will swell to at least 36% through the conversion of just under half of its existing preferred share holdings, the ailing financial group and the US Treasury have confirmed.
€24.5 billion international bailout for eastern Europe
The largest multilateral lenders in eastern Europe today pledged €24.5 billion over the next two years to support the region's banking sectors affected by "global financial retrenchment".
Lloyds asset protection scheme talks stall as HBOS losses confirmed
Lloyds Banking Group, which today confirmed that Halifax Bank of Scotland (HBOS) lost £10.8 billion in 2008, remains locked in talks with the UK government about participation in its asset protection scheme.
Deutsche offers inverse ETF to Asian market
Db x-trackers, the exchange-traded fund (ETF) arm of Deutsche Bank, has launched four new ETFs on the Singapore Stock Exchange including Asia's first inverse fund, the S&P 500 Short ETF, which tracks downwards moves in the S&P 500.
Appetite for financials tested in Mexico
Mexican distributor Actinver has placed an individual call cap structure linked to the yield of a basket of financial stocks. The trade is structured by Société Générale and issued by Société Générale Acceptance.
Investec rolls latest offerings off production line
Investec Structured Products has launched its seventh suite of structured trades comprising accumulation, investment and income plans all linked to the FTSE 100 index. In the income category is the five-year FTSE 100 and RPI Combination Plan 6, which…
Double-short ETFs launched to hedge market falls
EasyETF, the exchange-traded fund (ETF) provider, has listed five new funds on NYSE Euronext Paris. Three of the funds offer double leverage on the downside of European equity indexes, as a means of providing a hedge against further market falls.
CDS: US and European banks continue to tighten
Credit default swap 5-year mid-levels for structured products issuers (Thursday February 26)
CDS: Banks tighten after midweek blow out
Credit default swap 5-year mid-levels for structured products issuers (Tuesday February 24 & Wednesday 25)
US banks told: prepare for 47% drop in house prices
The US Treasury told the country's major banks they must ensure their capital levels can cope with a severe recession, including unemployment over 10% and an overall 47% drop in house prices from their peak in 2006.
Speculation over regulation mounts as Madoff lawsuits rack up
European investment funds are preparing to face tighter regulation in the wake of the Madoff scandal.
Obama calls for economy-wide carbon cap
President Barack Obama has indicated that the administration will work with Congress on cap-and-trade legislation in an effort to increase US energy independence.