Structured products
Op risk economic capital is 15%, says BIS study
Banks allocate an average of 15% of their economic capital for operational risk, according to a study released today by the Bank for International Settlements (BIS).
In need of reassurance
The knock-on effects of the crisis in equities has hit the insurance sector particularly hard – so much so that UK regulatory body the FSA has been forced to step in and allow certain insurers to breach mimimum solvency ratios.
Rating agencies open can of worms
NEW YORK — Rating agencies are coming under much closer scrutiny as providers of operational risk analysis, as a result of the Basel Accord revisions and recent US corporate scandals.
European demand for op risk talent set to surge in 2003
LONDON — Executive recruiters are seeing a strong rise in interest in hiring operational risk talent for commercial and investment banks, and dozens of fresh mandates.
Lehman to structure South Korean equity-linked securities
Lehman Brothers plans to structure 2.5 trillion won ($2 billion) of South Korean equity-linked securities to be issued and sold by two domestic securities firms in South Korea. The move follows regulatory changes at the end of February that allowed…
HVB closes $1 billion CDO
Germany’s Bayerische Hypo- und Vereinsbank (HVB) has closed a $1 billion hybrid collateralised debt obligation, according to an official at the German banking group. The transaction was structured by HVB in Singapore, and HVB Asset Management Asia is the…
Tailoring internal models
Risk models
Advancing op risk management using Japanese banking experience
Junji Hiwatashi and Hiroshi Ashida of the Bank of Japan outline a practical framework for operational risk management, derived from research and experiences in Japan's financial community.
Mark-it Partners puts it all on Red
Deutsche Bank, Goldman Sachs and JPMorgan are negotiating the sale of their credit derivatives reference entity database, Red, to UK credit risk data company Mark-it Partners.
UBS Warburg taps CDO structurers from JP Morgan Chase
UBS Warburg has recruited two senior collateralised debt obligation (CDO) structurers, Jeff Herlyn and Mike Rosenburg, from JP Morgan Chase.
Isda muddies debt waters
The International Swaps and Derivatives Association (Isda) has finally released its 2003 credit derivatives definitions, which take effect on March 17.
Fannie Mae to issue mortgage debt directly to foreign investors
Fannie Mae will issue foreign currency-denominated debt to help meet future house financing needs, the US secondary mortgage-market agency said today.
Profile: SEB strives for total operational risk acceptance
STOCKHOLM, Sweden — Within the discipline of operational risk, it's often fancy mathematical models and souped-up databases that executives choose to focus on. But Lars Hansén, manager of Swedish financial company SEB's group op risk team, says it's the…
Japan's banks under pressure as Nikkei hits fresh 20-year lows
Japan’s Nikkei 225 stock index fell to fresh 20-year lows today, sparking further concerns that the capital adequacy ratios of the country’s banks may come under acute pressure in the approach to the March fiscal year-end.
Opportunities exist for credit arbitrage in Asia, says Lehman
There are significant opportunities in the Asia-Pacific region for hedge funds employing credit and capital structure arbitrage, and a growing number of firms are starting to consider these strategies in the region, according to Dalip Awasthi, Tokyo…
Greenspan defends role of derivatives
In a speech today, Alan Greenspan, chairman of the US Federal Reserve, defended the use of derivatives as hedging tools, especially credit derivatives. His comments come in the wake of Warren Buffett’s criticism of derivatives as potential “time bombs”.
SPV Ruling: Counting the cost
The recent crop of high-profile accountancy scandals has forced the US accounting regulator to clamp down on the 'creative' use of special purpose vehicles to shift liabilities off balance sheet. Saskia Scholtes investigates the ramifications for firms…
Meeting Basel II head on
Profile
Universal hedging
Comment
First Taiwanese offshore primary CBO to close this month
The first Taiwanese offshore primary collateralised bond obligation (CBO), worth nearly $170 million, is expected to price in the week of March 17 and close on March 21, sources familiar with the transaction said today.
Job moves
People
BarCap chief hits back at Buffett’s derivatives 'time bomb' comments
Robert Diamond, chief executive of Barclays Capital, the investment banking arm of the UK’s Barclays Bank, has hit back at comments made by US investor Warren Buffett, who said on Monday that derivatives were “time bombs”. “[Buffett] should be wary of…
US Treasury department creates new financial institutions policy office
A new office that will focus on legislative and policy matters related to the financial services sector — including commercial banks, investment banks, insurance companies, credit unions and savings and loans — was announced yesterday by the US Treasury.