News
Overnight Libor rockets
Overnight Libor shot up today as a tumultuous morning dented confidence in the interbank lending markets.
IMF estimates crisis losses at $1.4 trillion
The International Monetary Fund (IMF) on October 7 increased its estimate of losses on US-originated housing loans and associated securitisation products to $1.4 trillion from $945 billion.
Icelandic bank CDSs the riskiest in Europe
Fears over the future of Icelandic bank Glitnir grew yesterday despite a €600 million government intervention. Five year credit default swap (CDS) spreads on the bank reached 4620.5 basis points by close of trading, the highest of any European financial…
Paulson picks GS alumnus to run bailout
US Treasury Secretary Henry Paulson has picked Neel Kashkari, a fellow veteran of Goldman Sachs, to run the planned $700 billion financial bailout.
G-30 speaks out on structure of financial supervision
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US agrees $700 billion bail-out
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Op risk for hedge funds focus of PwC white paper
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Germany does not guarantee savings accounts
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US bailout bill heralds eight year tax credit extension for solar energy
It was good news for the solar energy industry as it was given an eight year investment tax credit (ITC) extension in the financial bailout bill passed by US House of Representatives on 3rd October.
Bailouts fail to lift markets
The news of massive bank bailouts on both sides of the Atlantic failed to support the stock markets this morning - UK and European equities fell sharply in early trading, led by a weak financial sector.
Ted spread hits new high
The Ted spread, which tracks the difference between three-month Libor and US Treasury bills, continued to smash previous records as it hit an all time high of 3.93% at 1300 London time today.
CDS spreads on US banks tighten
Credit default swap (CDS) spreads on several US and European institutions tightened by close of trading on Friday as the impending bailout bill and a number of government initiatives restored confidence in the markets.
BNP to liquidate Fortis' €10.4 billion toxic assets
BNP Paribas plans to liquidate €10.4 billion in impaired assets left ringfenced after the breakup of the Benelux bank Fortis, chief executive Baudouin Prot said this morning.
LCDX index roll postponed indefinitely
London-based data provider Markit is postponing the roll of its LCDX index of 100 North American loan credit default swaps (LCDSs) until negotiations for a new single-name US LCDS contract are finished.
Hypo Real recieves €50 billion bailout
The German government, along with Deutsche Bundesbank, financial regulator BaFin and a number of German banking and insurance representatives, has agreed on a €50 billion rescue package for property lender Hypo Real Estate after an earlier bailout…
Fear of tail risk drives new derivative product
A new derivative product will allow buyers and sellers to take levered positions on equity and exchange-traded funds without worrying about tail risk, its designer says.
Greece guarantees deposits: Sarkozy proposes EU bail-out
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SEC extends short selling ban
The US Securities and Exchange Commission (SEC) has extended its ban on the short selling of financial stocks to October 17, in order to give the US Congress time to vote through measures aimed at stabilising the financial markets.
UBS exits commodities
Investment bank UBS has announced today that it will end its trading operations in the commodity markets, except precious metals.
CDS spreads on Icelandic banks hit new highs
The injection on Monday of €600 million from the Icelandic government to acquire 75% of Glitnir Bank has done nothing to ease fears over the bank’s future. Glitnir’s five-year credit default swap (CDS) spreads are now the highest of any European bank,…
"Fear gauge" at record high in interbank lending market
The TED spread, which tracks the difference between three-month Libor and US Treasury bills, hit a new high today - 3.81%, the widest level since records began in 1984.
Bank of England extends eligible collateral for repo facility
The Bank of England (BoE) on Friday extended the range of collateral eligible for its weekly sterling three-month repo facility to include AAA-rated asset backed securities (ABSs) of corporate and consumer loans and highly rated asset-backed commercial…
Greece follows Ireland's lead in savings guarantees
Greek finance minister Giorgos Alogoskoufis said yesterday the Greek government would guarantee its citizens' savings, following the decision of the Irish government to do the same earlier this week.
Online banking fraud explodes in the UK
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