Structured products
Basel II will have profound effect on US banks, says regulator
ORLANDO, FLORIDA - The Basel II capital accord will have profound implications for risk management techniques and capital management in the larger US banks, a leading US banking regulator said in late October.
ING closes first arbitrage synthetic CDO
ING Financial Markets closed its first arbitrage synthetic collateralised debt obligation today. The CDO is referenced on a static portfolio of 100 credit default swaps worth $1 billion.
Loan hedgers shy away from CDS market
Despite a surge in European lending activity during the past three months, many banks have decided not to hedge their risk with credit default swaps (CDSs), according to research by Morgan Stanley.
Cost of credit protection for IntesaBci widens due to weak Q3 results
The cost of senior five-year credit protection for IntesaBci widened 12 basis points to 87bp-mid, with its subordinated debt protection widening 40bp to 190bp-mid, after it reported weaker-than-expected results yesterday.
Isda presses Congress for passage of netting provisions
The International Swaps and Derivatives Association, the trade association for the financial risk management industry, has teamed with other key trade bodies in pressing the United States Congress to secure favourable passage of legislation on financial…
Europe allows wider role for op risk insurance in Cad 3 [full story]
BRUSSELS - European banks and investment firms would be able to use operational risk insurance to reduce capital charges in all approaches to measuring op risk under new European Union (EU) capital adequacy rules, banking industry and regulatory sources…
Basel II op risk charge will help tackle concerns, says McDonough
NEW YORK - Banking supervisors believe that a separate capital charge for operational risk under the Basel II capital rules will bolster efforts to find better ways of addressing concern about the operational hazards faced by banks, the world's chief…
Banding together for SME credit risk analytics
Germany's banking associations are taking a leading role in getting the country's fragmented banking sector ready to comply with the Basel II capital Accord. Germany's savings banks association, in particular, says it has internal ratings-based systems…
Letter to the editor of Risk : a response to Cosandey and Wolf’s Avoiding pro-cyclicality
Much has been written on the proposed changes to the Basel Accord (Basel II), and we have been surprised that the vast majority of both academic and practitioner literature focuses on the prescriptive regulatory approaches and formulas to calculate…
Convergence Capital to launch first hedge fund
Convergence Capital, a newly formed hedge fund manager focused on Central and Eastern Europe and Russia, will go live with its first long/short equity fund Constar (Convergence strategic absolute return fund), in the next two to three weeks. The fund,…
El Paso exits energy trading
US energy company El Paso announced plans to quit the energy trading business today as continued problems in the sector led it to post a third-quarter loss.
Scor ousts chief but sees no let up in cost of credit protection
French reinsurer Scor - plagued by profits warnings and a deteriorating financial position - has ousted its chairman and chief executive, Jacques Blondeau, with immediate effect, replacing him with Denis Kessler of the French insurance association.
Sponsor's article > Credit derivatives: will the market keep expanding?
This article aims to give a brief overview of some of the main trends in the credit derivatives market and also proposes to analyse some of the underlying reasons why this market is experiencing such a boom.
Shifting sands in the CB market
Convertible bonds
Pinching the systems penny
Trading technology
Tied up in FASB’s knots
Corporate equity tools
Taking stock of SSFs
Single-stock futures
Under the microscope
Wealth management
US investors complacent about currency risk, says Merrill
A decade of US asset and currency outperformance has engendered complacency among US-based equity investors, according to Merrill Lynch’s foreign exchange strategy group.
Moody's publishes CDO hedge counterparty guidlines
Rating agency Moody's Investors Service today said it has published a series of guidelines outlining the steps by which a collateralised debt obligation (CDO) hedge counterparty can better detach its own credit risk from the CDO itself.
A rollercoaster ride
Foreign exchange
All power to PRDC notes
Forex structured products
Reacting to spreads
Credit derivatives