Structured products
SG launches arbitrage synthetic CDO with 100% Asian exposure
SG, the corporate and investment banking arm of Société Générale, has closed a $100 million arbitrage synthetic collateralised debt obligation (CDO), backed by a portfolio of Asian credit default swaps.
€15bn floods bill unlikely to further hurt insurance sector
Insurers and reinsurers are unlikely to face significant financial difficulties following serious flooding in central Europe that has caused damage worth around €15 billion, according to research by UBS Warburg.
BNP Paribas prepares seventh Japan synthetic CDO
French bank BNP Paribas is preparing to close its seventh Japanese synthetic arbitrage collateralised debt obligation (CDO) under its Serena Finance programme, according to a senior Tokyo-based official at the bank.
Japan’s Mizuho mandates Merrill for large synthetic CLO
Mizuho Corporate Bank has mandated Merrill Lynch for what could be Japan’s largest synthetic collateralised debt obligation (CLO), according to market sources in Tokyo.
New credit structures appear in Asia
A handful of banks have begun marketing increasingly complex credit structures to yield hungry institutional investors in Asia, amid low interest rates and under-performing stock markets around the region.
FSA to review regulation of hedge funds
Hedge funds could become more accessible to UK retail investors following a Financial Services Authority (FSA) statement saying current restrictive selling rules are to be reviewed.
CreditTrade to expand coverage with $8 million venture capital
Credit derivatives inter-dealer broker and data provider CreditTrade has secured more than $8 million of venture capital investment to grow its data services and broaden its product coverage.
Goldman pushes into burgeoning CDO securities lending market
Goldman Sachs has entered securities lending trades with a handful of collateralised debt obligations (CDOs) in the past few months, says Alex Reyfman, New York-based credit portfolio quantitative strategist at Goldman Sachs.
Japan Credit Market Update: Spreads recover from panic selling
Japanese credit default swaps continued to recover this week, correcting a from a recent sell-off prompted by weak stock markets and general risk aversion on the market.
Singapore harmonises risk-based regulation of financial firms
SINGAPORE – Singapore financial regulators said today they would integrate risk-based regulation of banks, insurance companies and investment firms under a new department from September 1.
Singapore reconsiders hedge fund rules
Hot on the heels of Hong Kong’s decision to open up the hedge fund market to retail investors, the Monetary Authority of Singapore (MAS) is now revising its own rules on retail hedge fund investments, bringing it in line with its main regional rival.
Singapore harmonises risk-based regulation of financial firms
Singapore financial regulators said today they would integrate risk-based regulation of banks, insurance companies and investment firms under a new department from September 1.
Op risk floor removed to give flexibility
BASEL, SWITZERLAND - Global banking regulators have removed the operational risk capital floor previously proposed under the Basel II capital accord to give banks flexibility in developing op risk management systems.
Julius Baer launches capital protected products in response to “volatile and difficult times”
Declining political and economic stability has led to Bank Julius Baer launching a number of capital protected products, including investments that offer private investors exposure to rising gold prices, said the Swiss banking group.
Credit Markets Update: US airline woes push up protection costs on European carriers
The cost of credit protection on European airlines widened by 10 to 20 basis points this week following investor concerns about the state of the American airline industry.
UK accepts large banks could use basic op risk approach
LONDON - The UK’s chief financial market watchdog said in July it accepted that a large international bank could use the basic indicator approach, the simplest of the three approaches to calculating operational risk capital charges proposed under the…
US banks review legal options against operational risk charge
WASHINGTON - US opponents of capital charges as a protection for banks against operational risk are not giving up the fight following the reaffirmation by global banking regulators of their faith in such charges.
Skandia Liv likely to up hedge fund investments by year-end
Skandia Liv, the life assurance arm of Sweden’s Skandia with $27 billion in funds under management at the end of last year, is set to increase its investments in hedge funds by the end of the year, according to Malin Björkmo, Skandia Liv chief investment…
Economist questions banks’ approach to VAR analysis
Bank risk managers must use more intra-day price data – also referred to as high-frequency data – to improve their value-at-risk analyses, according to Richard Olsen, an economist and founder of Zurich-based hedge fund and risk services company Olsen.
Beyond the pail
Australia’s regulator has hinted that it may work outside of the Basel Accord to set its own risk weightings for residential mortgages if adjustments aren’t made, writes Nick Sawyer.
Back to the floor
Australia’s major banks are all targeting the advanced measurement approach for calculating operational risk capital under the new Basel Accord. As such, the concept of a floor is proving irksome, writes Nick Sawyer.
Japan Credit Market Update: Fujitsu and bank spreads hit in tighter general market
The cost of credit protection was higher on Japanese banks and some electronics names this week, amid a more stabilised market.
True Quote trading platform adds electricity products
APB Energy has added electricity options to its online energy trading platform, True Quote.