Structured products
Barcap launches equity volatility index family
Barclays Capital has launched a new index designed to exploit the volatility of equity markets. The Vertex index family uses a strategy based around implied volatility which the bank is mooting as an effective insurance tool for underlying equity…
HK SFC posts list of unlisted retail structured products
The Hong Kong Securities and Futures Commission (SFC) has posted a list of unlisted retail structured products on the InvestED website as a reference for investors. The list contains a brief description of the product type, the underlying assets and the…
Treasury to take $125bn equity in nine US banks, says Paulson
The US Treasury will give banks and thrifts up to $250 billion as part of a series of measures designed to boost public confidence in financial institutions and restart immobile interbank lending markets.
JP Morgan takes DME stake
JP Morgan has taken an undisclosed equity stake in the Dubai Mercantile Exchange (DME).
Bank of Japan joins money market rescue
The Bank of Japan has joined other central banks in offering unlimited dollar loans in order to restore liquidity to the interbank lending market.
G-7 plan of action
Daily news headlines
RBS, HBOS and Lloyds TSB ask for government capital
The UK government announced this morning it will pour a total of £37 billion into Royal Bank of Scotland (RBS), HBOS and Lloyds TSB, as part of a recapitalisation plan revealed last week.
$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…
Australasian governments offer aid to banks
The Australian and New Zealand governments have unveiled new initiatives to boost confidence in funding markets.
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.
FSA clamps down on remuneration packages
The UK Financial Services Authority (FSA) today said that bank employees were given incentives to pursue risky policies to the detriment of shareholders, and ultimately taxpayers.
European governments promise loan guarantees and bank restructuring
After an emergency summit in Paris at the weekend, leaders of the eurozone countries have decided on a new bailout package for their struggling banks.
Eurozone governments unveil details of rescue plans
Following the news of a rescue plan for eurozone banks this morning, European governments have been spending the afternoon fleshing out the details of their planned recapitalisations and loan guarantees.
Central banks promise unlimited dollar lending
Three central banks - the Bank of England, the European Central Bank and the Swiss National Bank - will offer unlimited short-term US dollar lending from Wednesday, in the latest attempt to improve interbank liquidity.
NDFA delivers Fixed Income and Growth Kick Out Plans
NDFA has launched its Fixed Income Plan September 08, which draws on the tax efficiencies for dividend income from non-UK shares. This effectively enables basic rate taxpayers to receive non-UK dividends tax-free and higher rate taxpayers have rates…
Quantum goes for gold and energy
Quantum Asset Management has released three plans linked to commodities including gold and oil, in the belief that long-term investors should be increasing their exposure to energy commodities and gold in particular. The five and a half-year Protected…
UK Banks await clarification on £250 billion unsecured debt guarantee
UK banks, which are planning to participate in the government’s rescue plan for financial institutions, are awaiting clarification on how the temporary underwriting of the issuance of new unsecured debt instruments will affect structured products. The…
MAS publishes timeline for Minibond resolution process
The Monetary Authority of Singapore (MAS) has published a timeline for the resolution process for investors who bought Lehman Minibonds. The trustee (HSBC Institutional Trust Services Singapore), which is in charge of overseeing the Minibond products,…
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).
Transparency act remains unclear
Proposed legistlation on US energy market regulation is causing concern amongst traders finds Pauline McCallion
Safe to come out?
As energy traders take stock after the unprecedented market turmoil of September, the Energy Risk team asks a range of key players what effects they expect the investment banking crisis to have on commodities trading and risk management
Funds warn against stifling trade
Recent moves to increase regulation in oil markets are stifling trade and won't bring down prices, warn fund managers
ETRM evolution
As energy trading and risk management systems become increasingly sophisticated, Rana Basu of TradeCapture looks at what users need to consider as they progress from implementing and using the most basic to the most complex systems