Structured products
Airline sector finds favour
NYSE Euronext has launched the NYSE Arca Global Airline Index, which tracks the performance of stocks in the passenger airline sector. The index is listed on the exchange's Arca platform and has been licensed to exchange-traded fund provider Claymore…
CDS: Closing levels for January 16
Credit Default Swap 5-year senior mid-levels for structured products issuers (Friday January 16)
UBS casts Perles in Australia
UBS in Australia has launched the Perles+ Series 3 and 4 structured products which are designed to provide exposure to the S&P/ASX200 index.
UBS "reprioritises" commodity business
UBS today agreed to purchase the commodity index business of AIG Financial Products Corporation for $15 million plus an earnout, after confirming the sale of its base metals, oil and US power and gas businesses to Barclays Capital on Friday.
Banks tighten conditions on revolving credit extensions
More stringent terms and conditions are being attached to revolving credit facilities (RCFs), although banks are still extending them to investment-grade corporates. Analysts and bankers agree that RCFs are becoming more expensive and smaller and will…
Basel Committee prepares to raise capital requirements with 'stressed VAR' test
Banks may face significantly higher regulatory capital requirements under proposed changes to the Basel II capital adequacy rules released today.
Massive writedowns expose failure of RBS' ABN Amro takeover
Ahead of its 2008 results announcement next month, Royal Bank of Scotland has warned of £28 billion in writedowns and losses, much of it associated with the 2007 takeover of parts of the Dutch bank ABN Amro. The UK government has again stepped in to help…
UK government creates £50 billion ABS fund
The UK government outlined further plans today to try to stabilise the economy and encourage banks to lend more.
58% of structured product complainants to receive compensation, MAS
Fifty-eight percent of investors who filed complaints on being sold DBS High Notes 5, Lehman Minibonds, and Merrill Lynch Series 3 LinkEarner notes will receive full or partial compensation, according to the Monetary Authority of Singapore (MAS). Almost…
FTSE to take over calculation of Italian MIB indexes
Index provider FTSE will take over the calculation of existing equity indexes for the Italian market on behalf of Borsa Italiana from March 30 2009. The current S&P/MIB index, the calculation of which will be unchanged in the transition, will be…
CDS: Citi tightens but remains wide at 346.2bp
Credit Default Swap 5-year senior mid-levels for structured products issuers (Thursday January 15 2009)
$20 billion in Tarp aid for Bank of America after Merrill losses
Bank of America will receive a $20 billion cash injection and guarantees on $118 billion of debt in return for carrying through its acquisition of Merrill Lynch at the start of the year.
Citi hit by $8.9 billion Q4 loss, splits company
US banking giant Citi today reported a net loss of $8.9 billion for the fourth quarter and a $18.7 billion loss for the whole of 2008. The bank will now be split into two entities.
Sifma approves plan to unfreeze $200bn of CMOs
A plan to re-inject liquidity into into the collateralised mortgage obligation (CMO) market will go into action later this month after being approved by a major US industry association.
G-30 calls for far-reaching reforms
Daily news headlines
In comes the New Year with NDFA Income plan
NDFA has unveiled its latest Regular Income plan, delivering tax efficient returns for dividend income from non-UK shares. With interest rates cut to their lowest level, NDFA believes that 2009 will be the year of the income investment. "Income will,…
CDS: European banks stable; Citi levels overwhelmed by break-up plan
Credit Default Swap 5-year senior mid-levels for structured products issuers (Wednesday January 14 2009)
JP Morgan Q4 net income plunges 74%
JP Morgan remained in the black in the fourth quarter of 2008, but its profits dropped sharply to $702 million after significant losses on leveraged loan and mortgage exposure.
G-30: large banks may be too big to trade
Large banks could be restricted from risky prop trading for their own good, suggests a Group of Thirty (G-30) report issued today.
RBS combines CDO/CLO business with MBS/ABS division in Asia
The Royal Bank of Scotland (RBS) has combined its Asian collateralised debt obligation and collateralised loan obligation business with the mortgage-backed/asset-backed securities (MBS/ABS) product business under Byron Holmes, Tokyo-based head of Asia…
Keydata Growth plan outperforms FTSE 100 and a range of investments
Keydata Investment Services has disclosed that its Dynamic Growth Plan Issue 4 Accelerated Growth Plan has outperformed the FTSE 100 index, cash, all UK tracker funds, as well as 424 actively managed funds that span five fund sectors. The plan, which…
Barclays produces new investment note to ride US recovery
Barclays Bank is offering a three-year structured product designed to capitalise on a rapid recovery in US markets. "Just as it led the decline in 2008, experiencing losses of over 38%, commentators expect the S&P 500 (the US equity index that tracks its…
CDS: Santander leads widening
Credit Default Swap 5-year senior mid levels for structured products issuers (Tuesday January 13 2009)