News
Basel II to boost both large and small banks' loan prices
The prices of some loan products for retail and middle-market corporate clients will almost certainly rise when banks implement the Basel II capital Accord in 2006, according to speakers at Risk ’s Capital Allocation 2002 USA conference this morning.
France Telecom’s imminent €1.5bn bond hits spreads by 7bp
France Telecom’s plans to tap the bond market for the first time this year with a seven-year, €1.5 billion bond issue caused its cost of credit protection on five-year debt to widen by 7 basis points to 280/290bp today.
Basel II unlikely to cause marked cut in lending to emerging markets, says Bank of England
LONDON - The proposed Basel II bank accord seems unlikely to cause a marked contraction in lending to borrowers in emerging markets, even low quality borrowers, the Bank of England said today.
LSE moves to offer new equity derivatives services
The London Stock Exchange (LSE) plans to buy OM London Exchange and will rename the company EDX London. The move is part of a bid by the LSE to improve efficiency and risk management in the equity derivatives business.
Merrill Lynch takes Fenics
Merrill Lynch today said it will deploy the Fenics FX options pricing software from New York-based broker and vendor GFI Group in 100 global positions. Fenics replaces Merrill’s existing in-house pricing platform for FX options.
Basel II unlikely to cause marked cut in emerging markets lending, says Bank of England
The proposed Basel II bank Accord seems unlikely to cause a marked contraction in lending to borrowers in emerging markets, even low quality borrowers, the Bank of England said today.
AIG makes senior FX appointments
AIG Trading Group has made four senior additions to its global foreign exchange operation over the past two months, a spokesperson in the bank’s Greenwich, Connecticut headquarters said.
BarCap builds credit team with two new hires
Barclays Capital, the investment banking arm of the UK’s Barclays Bank, has boosted its presence in the European credit derivatives business through two new hires.
ST Asset Management mulls CDOs and plans to boost headcount
ST Asset Management (STAM) is planning to increase its staff – which is currently 19-strong – by one third throughout next year, in a push to become a key participant in Asia’s structured finance market, according to Chong Jiun Yeh, a senior vice…
Credit protection for European telecoms continues to tighten
The cost of credit protection for European telecoms continued to tighten this week, led by France Telecom and boosted by an S&P upgrade for the Netherlands' KPN yesterday. Elsewhere in Europe, spreads remained tight with little movement, including those…
Weak yen helps cheapen protection on Japanese exporters
A weaker Japanese yen earlier this week lifted market sentiment on the financial prospects of Japanese export companies, which caused their credit protection costs to narrow up to 20 basis points.
Natexis hit by heavy equity derivatives losses
French bank Natexis Banques Populaires has made significant losses from its equity derivatives trading business due to poor risk control and failures in the bank’s valuation models.
Japan's SMEs facing funding crisis
Japan's small and medium-sized enterprises (SMEs) are facing the worst funding crisis since the 1997/98 Asian financial meltdown, according Hiroshi Nakaso, associate director of the financial markets department at the Bank of Japan, speaking at Risk…
JP Morgan Chase prepares largest Asian managed synthetic CDO
JP Morgan Chase is preparing to launch what will be the largest synthetic collateralised debt obligation (CDO) to date to be managed by an Asian fund manager. The $1.7 billion deal will be managed by Singapore's UOB Asset Management, say Asian investors…
ABN Amro to close A$1.1 billion Gibraltar synthetic CDO today
Dutch banking group ABN Amro expects to close its Gibraltar synthetic collateralised debt obligation (CDO) referenced on a portfolio of global credit default swaps worth a notional amount of A$1.1 billion today, Paul Cordeiro, ABN Amro's Sydney-based…
ING provides swap for first Korean cross-border RMBS
Dutch bancassurer ING is to provide a 21-year swap for South Korea’s first cross-border residential mortgage-backed security (RMBS). “This is the first 21-year cross-border swap done in the Korean market,” said Marc Choo, a Hong Kong-based director in…
Mexican central bank signs up to OpenLink
Banco de Mexico, the central bank of Mexico, has signed up for OpenLink’s Findur solution to integrate its front-, middle- and back-office functions. OpenLink is a New York-based trading and risk management software company.
Prebon Yamane’s Hong Kong head Lam to retire
Joe Lam, managing director of brokerage house Prebon Yamane (Hong Kong), will retire from the firm following 27 years with the company. His replacement has yet to be named.
Asian high-yield bonds should prove a safe haven for 2003, says ING
Healthy economic growth in Asia and continued demand for Asian bonds from Asian investors – known as the ‘Asian bid’ – should immunise Asia’s high-yield bond market next year from the default problems plaguing the global corporate bond market in 2003,…
Wagner named new CFO of Mirant
Atlanta-based energy firm Mirant has named Harvey Wagner as its new chief financial officer (CFO).
Drilling company Transocean to use SunGard’s Quantum
Houston-headquartered offshore drilling contractor, Transocean, plans to install Pennsylvania-based SunGard’s Quantum treasury management system.
Sempra buys CMS' gas trading business
Sempra Energy Trading, the Connecticut-based gas, power and petroleum dealer, has bought the gas trading book of Michigan-based CMS Energy for $17 million, a Sempra spokesman confirmed today.
JP Morgan launches LSE-listed certificates
JP Morgan has launched the first listed certificates registered on the London Stock Exchange (LSE), targeted at retail investors. The move follows the launch in November of covered warrants in the UK.
Wyman’s Wilson to head new Prmia chapter in Switzerland
Tom Wilson, head of Oliver Wyman and Company’s global finance and risk practice group, will head a new chapter for the Professional Risk Managers’ International Association (Prmia) in Switzerland.