Structured products
Lloyds TSB hires FSA risk regulator
Lloyds TSB, fined recently by the Financial Services Authority (FSA) for mis-selling investment products to retail investors, has responded by hiring the UK financial watchdog's top risk regulator.
Moody’s hits out at combined cash and synthetic CDOs
Moody’s Investors Service has warned investors that the International Swaps and Derivatives Association legal documentation underpinning combined cash and synthetic collateralised debt obligations (CDOs) is far from perfect.
Moody's hits out at combined cash and synthetic CDOs
Moody's Investors Service has warned investors that the International Swaps and Derivatives Association legal documentation underpinning combined cash and synthetic collateralised debt obligations (CDOs) is far from perfect.
BMA focuses on European CDO market
International trade body the Bond Market Association (BMA) intends to increase its focus on boosting liquidity and helping to set market standards in the European collateralised debt obligation (CDO) market. This includes the possible establishment of a…
BNP closes its first self-managed CDO tranche in Asia
French bank BNP Paribas has closed its first self-managed synthetic CDO transaction in Asia, a first-loss equity tranche that allows the investor to substitute credits in the underlying portfolio.
Isda publishes new weather index confirmations
The International Swaps and Derivatives Association has published new confirmation templates for swaps and options on weather indexes.
Glass-Steagall and Dingell?
Congressman John D. Dingell, the indefatigable Democrat from Michigan, has embarked on a crusade against the practice of 'tying' – where banks use loans to secure further business.
S&P versus Basel II: A fragile accord
By publicly casting doubt over aspects of the Basel II Accord's methodology, rating agency Standard & Poor's is voicing concerns shared by many in the banking industry. Joanne Hart asks how this dispute may affect bondholders and the market in general.
BMA creates distressed debt committee
The Bond Market Association (BMA) has formed a new committee to deal with industry issues related to the trading of distressed debt. The move is aimed at creating a common set of trading protocols to facilitate the continued growth of the market –…
Speakers voice synthetic credit and capital structure arbitrage fears
A number of speakers at Risk ’s Credit Risk Summit USA 2003 voiced concerns about investments in credit derivatives and capital structure arbitrage yesterday. Sivan Mahdevan, an analyst in Morgan Stanley’s credit derivatives research group, when opening…
CP3 comments: Any last words?
The comments elicited by the Basel Committee's third consultative paper (CP3) show just how little consensus exists between regulators and banks on the Basel II capital Accord. Dwight Cass highlights some of the telling comments.
Bill of rights
A group of 25 institutional investors have released a manifesto outlining their aims for a better world for bondholders. Stronger covenants, greater transparency and improved ratings practices are amongst their demands.
Japanese arbitrage CDO issuance to remain at standstill
The issuance of arbitrage synthetic and cash collateralised debt obligations (CDOs) in Japan is set to remain at a standstill due to tight credit spreads, according to a report published by Moody’s Investors Service.
GFI buys exotic options model
Inter-dealer broker and market data firm GFI Group has bought options pricing model dVega and integrated it with the latest release of its flagship options pricing tool Fenics FX.
Managed Funds Association appoints chairman
The Managed Funds Association, the leading US lobby group for the hedge fund business, has appointed Adam Cooper from Citadel Investment Group as its new chairman.
iBoxx launches tradable CDO tranches
Bond and credit default swaps index company iBoxx has launched a series of tradable instruments linked to single tranches of one of its credit default swap (CDS) indexes.
JP Morgan Chase prepares first syndicated synthetic CDO
JP Morgan Chase has taken a leaf out of the bond and loan markets by putting together the first syndicated synthetic collateralised debt obligation (CDO).
HSBC closes $380 million synthetic balance sheet securitisation
HSBC has closed a HK$3 billion ($380 million) synthetic balance sheet securitisation transaction backed by its taxi and public light bus hire purchase agreements. It is the first synthetic transaction backed by such asset classes in Asia.
Banks should standardise CDS indexes, says credit derivatives panel
Investment banks should be pushing for standardisation in credit default swaps (CDS) indexes, agreed a panel of credit derivatives experts at Risk ’s Credit Risk Summit Europe 2003 in London.
Credit derivatives set to hit $10 trillion by 2007, says Deutsche’s Misra
The credit derivatives market is set to hit $10 trillion in notional value within five years, with the number of actively traded credit default swaps set to double by 2007 to 600, according to Deutsche Bank’s global head of integrated credit trading…
Asset manager technology hinders op risk management
Less than 40% of global asset managers believe they have the necessary technology to manage operational risk and automation issues effectively, according to a survey released last week.