News
S&P GSCI Index Commodity Swaps to clear on CME ClearPort
Standard & Poor's has signed a licensing agreement with CME Group to clear swaps on the S&P GSCI Excess Return Index.
Scotia Capital acquires part of UBS Energy
Scotia Capital, a subsidiary of Scotiabank, today announced the acquisition of assets and employees from UBS Energy, a unit of UBS AG.
Fed approval leaves Ice/TCC on brink of CDS clearing
Intercontinental Exchange's (Ice) application to become a member of the Federal Reserve System has been approved by the US central bank, overcoming one of the final obstacles preventing the firm from launching its central clearing platform for credit…
UBS's chairman to follow CEO out
UBS' chairman Peter Kurer will not stand for re-election at its next annual general meeting on April 15.
Shrinking dividends may be a mixed blessing
Implied dividends beyond 2009 remain at highly distressed levels, creating torment for dealers and hedge funds with dividend exposures, but providing opportunities for market participants elsewhere.
Treasury launches Talf, drops compensation caps
The US Treasury and Federal Reserve Bank of New York launched the Term Asset-Backed Securities Loan Facility (Talf) yesterday, but opted to remove restrictions on executive remuneration for participating institutions.
CDS spreads narrow on financials
European financials faced improved market sentiment in early trading today, with the cost of credit protection falling on France's three biggest banks.
Brown quits as HSBC's currency head
Andrew Brown today left his post as global head of foreign exchange at HSBC.
Wave of litigation comes after bonuses go unpaid
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Economic downturn fuelling corporate fraud and corruption risks
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Northern Rock reports heavy losses in 2008
Northern Rock made a loss of £1.36 billion in 2008, but said repayment of its loan from the UK government was ahead of schedule.
Isda to publish auction settlement supplement, launches close-out protocol
The International Swaps and Derivatives Association will publish its auction settlement supplement and open the Protocol on March 12.
Hang Seng profits fall after WaMu debt writeoffs
Hang Seng Bank, the 60% owned Hong Kong subsidiary of HSBC, saw profits slide after heavy bad debt costs in 2008, including the write-off of all its Washington Mutual bonds.
Mixed morning for financials in CDS market
Financials faced mixed market sentiment in early trading today, with the cost of credit protection rising on European banks but falling on US firms.
Margaret Leung to replace Or as Hang Seng CEO
Margaret Leung, currently group general manager and global co-head of commercial banking at HSBC, will replace Raymond Or Ching-fai as chief executive of Hang Seng Bank in May.
AIG dismantled risk controls on CDS portfolio, says Greenberg
American International Group Financial Products (AIGFP) dismantled existing risk management controls around its credit default swap (CDS) portfolio following the ousting of Hank Greenberg, the former chief executive has alleged in a new lawsuit.
EM focus pays off again for Standard Chartered
Standard Chartered Bank, the emerging markets specialist, has again bucked the trend in the banking industry, reporting a double-digit rise in earnings for 2008 and a cautiously positive outlook for 2009 today.
Yen weakens as carry trades unwind, yen and equities decorrelate
The unwinding of yen carry trades and the de-correlation of the yen with equity markets, as well as wider economic factors, have all been linked to the yen's decline over the past month.
US to restructure AIG bailout after $61.7 billion Q4 loss
Marking the largest corporate quarterly loss in US history, today AIG reported that it lost $61.7 billion in the fourth quarter of 2008. It blamed disruption in the credit markets, particularly within its commercial mortgage-backed securities (CMBS)…
ICE offers margin offsets on coal and emissions contracts
ICE Futures Europe has introduced margin offsets between its Coal Futures and Emissions contracts.
Reliant sells Texas business to NRG and posts fourth quarter loss
In addition to the sale of its Texas retail business to NRG Energy for $287.5m, Reliant Energy has announced fourth quarter losses, including $177m from energy derivatives.
Lehman likely to recoup value of derivatives trades
Counterparties to derivatives trades with Lehman Brothers that are currently in-the-money for the bankrupt estate will not be able to hold off payment indefinitely, predict lawyers.
Eastern European CDSs move out
The cost of credit protection on the sovereign debt of several eastern European states rose in early trading today, despite a €24.5 billion aid package for the region's ailing financial sector promised on Friday by three international multilateral…
HSBC seeks to raise £12.5 billion from shareholders
HSBC today revealed it would try to raise £12.5 billion through a UK rights issue, as it announced both a 62% drop in profits in 2008 and intention to close its US consumer finance business.