Structured products
ING provides cross-currency swap for Samsung Card ABS
The Netherlands' ING Bank will provide the cross-currency swap for South Korean consumer finance company Samsung Card’s $400 million of cross-border asset-backed securities, said a spokeswoman for the Korean company.
Airline exposures cast shadow over CDOs and derivatives trading
Collateralised debt obligation (CDO) investors assessing their credit risk exposure should be aware that recovery prospects among airlines bonds vary dramatically from company to company, according to Goldman Sachs.
Defaults by EU companies outpace global and US counterparts, says S&P
The default rate in the European Union (EU) continued to outpace its global and US counterparts during the third quarter, according to rating agency Standard & Poor's (S&P). A total of 20 rated EU entities have defaulted on rated debt worth $8.7 billion…
JP Morgan Chase markets CDO with equity puts in Asia
JP Morgan Chase has begun marketing synthetic collateralised debt obligations (CDOs) with embedded equity put options to a small number of investors in Asia-Pacific. This type of structure is aimed at sidestepping the sometimes-thorny issue of…
Taiwan rule change should help local interest rate derivatives market
The Taiwanese authorities’ decision to allow short selling of government bonds in mid-October is opening the door to new derivatives products on the Taiwan dollar market.
Global defaults fall for first time in two years, says S&P
Global default rates fell in the third quarter for the first time in two years, signalling that the flood of corporate defaults that began in the late 1990s has peaked, according to ratings agency Standard & Poor’s.
Super-senior risk buyer’s role seen as vital in managed synthetics
The future growth in managed synthetic collateralised debt obligation (CDO) deal-flow is dependent on the willingness of counterparties to sell super-senior risk protection to CDOs, said Jeff Huffman, a London-based executive director in Goldman Sachs’…
Morgan unveils managed bespoke credit investment product
JP Morgan Chase has completed what it claims is the first of a new generation of credit derivatives investment deals.
Julius Baer offers alternative to options hedging
Switzerland’s Bank Julius Baer is expanding its equity product range by introducing investments that give downside capital protection by imitating options hedging on a portfolio.
Japanese CDOs hit record levels, but investors may receive raw deal
The issuance of Japanese collateralised debt obligations could hit a record ¥3 trillion ($25 billion) this year, but investors may not be receiving enough spread for the risks they face, according to a report this week by Moody’s Investors Service.
BNP Paribas closes eighth Japan synthetic CDO via Serena Finance
French bank BNP Paribas has closed an arbitrage synthetic collateralised debt obligation (CDO) referenced to a portfolio of credit default swaps worth a total notional amount of ¥144 billion ($1.16 billion), according to Stéphane Delacote, the bank’s…
QIS 3 suggests Basel II op risk charges and insurance role
BASEL - The third Basel II quantitative impact study, or QIS 3, brings bankers up to date with the latest thinking of global banking regulators on the treatment of operational risk under the complex Basel II bank protective capital accord.
BofA develops new credit risk model
Bank of America is developing a sophisticated model that uses derivatives data to help asset managers get a better handle on credit risk within their portfolios.
Hedge funds take root in retail sector
Despite the regulations enforced on hedge funds by the FSA, some of the biggest groups are based in the capital. With an increasing number of funds being launched, advisers have even more opportunities to widen their clientele
There may be trouble ahead
The Harmonic Grid is forecasting an unsettled outlook for the global economy
Structured ratings
In the second part of Hedge Fund Review's look at the newest way to raise capital, Moody's explains its ratings process for collateralised fund obligations
Let there be light
Philip Gibbs, manager of Jupiter Hyde Park, sees little upside in investment banks or insurance companies, but continues to take long positions in hedge fund companies