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FX volatility drought clears as US dollar softens
The volatility drought in the forex markets could be over, market participants told RiskNews ' sister publication FX Week , as sustained losses in the US dollar last week brought currency pairs out of the narrow ranges they have traded since the start of…
Morgan Stanley set to launch European synthetic ‘Tracer’
Morgan Stanley plans to launch a synthetic version of its tradable custodial receipt – ‘Tracer’ – product soon in Europe, following its introduction of a Tracer index based on single-name credit default swaps in the US in mid-April, and its launch of…
FSA retreats on insurer credit risk transfer concerns
The UK’s Financial Services Authority today said it generally has faith in insurers that use credit derivatives as a means for risk transfer. This contradicts previous statements by FSA chairman Howard Davies, who signalled his desire to clamp down on…
Hong Kong retail investors' derivatives usage trebles
The number of Hong Kong retail investors buying derivatives increased three-fold last year, according to a survey released this week.
BofA highlights danger of over-leveraged synthetics
The over-leveraging of investment grade corporate credit-backed synthetic collateralised debt obligations (CDOs) accentuated the impact of credit downgrades last year, according to new research by Bank of America.
Rates Markets Update: Swap flows increase on economic news
Dollar-swaps saw big flows this week following a US Treasury announcement on Monday that it plans to borrow $120 billion to cover its budget shortfall. Ten-year swap spreads had come in from 57.5 basis points at the start of the week to 52bp midweek,…
Hedge funds of funds may offer CDO opportunity, says S&P
Standard & Poor’s (S&P) today predicted that collateralised debt obligations (CDOs) of hedge fund of funds will be the next sector to fuel growth in alternative investments.
Hedge funds open to retail investors in HK
A new ruling by Hong Kong's Securities and Futures Commission (SFC) today will allow retail investors in the Special Administrative Region to buy hedge funds from the third quarter of this year.
Moody’s highlights swap risks within European securitisations
Using fixed amortisation schedule swaps to hedge securitisations can actually increase, rather than reduce the market risk, claims Moody’s Investors Service.
FASB redefines derivatives
The Financial Accounting Standards Board (FASB) yesterday amended the definition of derivatives within its mark-to-market accounting regulation FASB 133.
iBoxx launches Xavex
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XBRL promotes transparency
Credit tech
UK's FSA to tackle operational risk
The UK’s Financial Services Authority (FSA) today launched its whistle-blowing initiative, designed to encourage financial industry workers to make disclosures about malpractice in the workplace.
AFP warns against hasty derivatives regulation
Bill Miller, chairman of the Association of Financial Professionals’ (AFP) End-Users of Derivatives Council (EUDC), is calling for restraint when considering amending US derivatives regulation following the collapse of Enron.