Structured products
HSH Nordbank alleges fraud by UBS over CDO
HSH Nordbank has filed a suit against UBS, claiming fraud caused it significant losses on a $500 million investment in a subprime mortgage-linked synthetic collateralised debt obligation (CDO) sold to the German bank in 2002.
Rogue trade loses MF Global $141.5 million
Interdealer broker MF Global has lost $141.5 million after it was forced to cover trading losses made by one of its employees.
SEC help sought as auction securities crisis deepens
The trade association representing broker-dealers has confirmed it has been in contact with the US Securities and Exchange Commission (SEC) regarding measures to restore confidence in the troubled auction-rate securities (ARSs) market.
Standard Chartered reports $4 billlion profit
London-based Standard Chartered has reported a $4.04 billion profit, despite $300 million in US subprime debt-related writedowns.
FDIC chairman Bair’s warning on Basel II models
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JP Morgan and Munich Re enter mortality bond market
JP Morgan has placed $100 million of extreme mortality bonds for reinsurer Munich Re, in the first foray into the mortality bond market for both firms.
Auto loan ABS delinquencies rise
With uncertainty blighting the US economy, auto loan delinquencies have hit 10-year highs.
Progress made on equity derivatives backlogs
Investment banks have continued to make progress with reducing confirmation backlogs associated with executing over-the-counter equity derivatives trades. The average backlog has been reduced to nine days, down from 19 days in November 2006, according to…
Bank practices undermined liquidity, BIS says
In the approach to the credit crisis, practices such as securitisation, dependence on the money markets and use of collateral increased the danger of a liquidity shortfall, according to a report released by the Bank of International Settlements (BIS).
CPDOs suffer more downgrades
Rating agency Standard & Poor's (S&P) has downgraded 28 of the 29 constant proportion debt obligation (CPDO) transactions it rates.
Meteor unveils latest commodity offering
Meteor Asset Management has launched a protected commodities plan which allows investors to participate in the performance of a basket of eight equally-weighted hard and soft commodities at a rate of either 130% or 165%.
US equity options trading soared to 2.8 billion contracts in 2007,Tabb
The US equity options markets soared to 2.8 billion contracts in 2007, a 41% increase from 2006, says the Tabb Group in its Equity Options Trading 2008 report.
Middle East should be cautious, urges Bahrain regulator
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UK banks show resilience
London-based Barclays has reported improved earnings for 2007, despite a $3.2 billion (£1.6 billion) net loss due to exposures to US subprime loans.
PBGC throws in towel on liability-driven investment
The US Pension Benefit Guaranty Corporation (PBGC) has called time on its commitment to liability-driven investments (LDI) after admitting its current strategy has a less than one-in-five chance of meeting future funding needs.
Peeters parts company with Morgan Stanley
Benedict Peeters has left Morgan Stanley, where he was managing director and head of retail structured products for Europe at the US investment bank. Peeters left the bank last week, for personal reasons, according to a spokesman for the bank.
Mispricings at Credit Suisse cause $2.85 billion loss
Zurich-based Credit Suisse has suffered an additional $2.85 billion in writedowns due to ‘mismarkings and pricing errors’ in structured credit products exposed to US subprime mortgages.
Monoline costs ANZ $200 million
Melbourne-based Australia & New Zealand Banking Group (ANZ Bank) has announced a US$200 million loss provision due to counterparty risk exposures to troubled US monoline insurer ACA Capital.