News
South Korean CDS spreads tighten after earlier panic protection buying
The cost of protection on South Korean sovereign US dollar credit dropped from this week’s higher levels as market sentiment improved, but dealers said that the market is still nervous and there could be more volatility in the credit default swaps market.
Equity rally prompts tightening of financial spreads
The upswing in equity prices in the second half of the week has prompted a contraction in credit default swap spreads for European banks and insurance companies. But German names, including HVB, were still trading at wider levels for subordinate…
NY Fed’s Rutledge outlines US plans, IRB goals
William Rutledge, executive vice-president of the New York Federal Reserve Bank, outlined the next steps US regulators will take to implement the Basel Accords in the US.
QIS 3 results to be delayed to May
The release of the third Quantitative Impact Study (QIS3) results will be delayed until May.
Enron charged with gas and broadband manipulation
The US Commodity Futures Trading Commission (CFTC) yesterday finally charged bankrupt energy trader Enron and a former company vice-president with manipulating natural gas prices. Also yesterday, federal authorities arrested on fraud charges two Enron…
FASB votes to review stock-based compensation standards
The Financial Accounting Standards Board (FASB) yesterday voted to review its standards on treating the cost of employee stock options as an expense. The move follows the submission of almost 300 industry comments on the issue.
Lehman to structure South Korean equity-linked securities
Lehman Brothers plans to structure 2.5 trillion won ($2 billion) of South Korean equity-linked securities to be issued and sold by two domestic securities firms in South Korea. The move follows regulatory changes at the end of February that allowed…
Bear Stearns appoints new head of convertibles origination
Bear Stearns has appointed Paul Rosica from Lehman Brothers as senior managing director and head of convertibles origination in its equity capital markets group.
HVB closes $1 billion CDO
Germany’s Bayerische Hypo- und Vereinsbank (HVB) has closed a $1 billion hybrid collateralised debt obligation, according to an official at the German banking group. The transaction was structured by HVB in Singapore, and HVB Asset Management Asia is the…
US commercial banks’ trading revenues down 21.5%
Total cash and derivative trading revenues at US commercial banks decreased by $508 million, to $1.86 billion, in the final quarter of 2002, according to research from the Office of the Comptroller of Currency (OCC).
UBS Warburg taps CDO structurers from JP Morgan Chase
UBS Warburg has recruited two senior collateralised debt obligation (CDO) structurers, Jeff Herlyn and Mike Rosenburg, from JP Morgan Chase.
CBA enhances risk management and dealing technology
The Commonwealth Bank of Australia (CBA) has carried out a series of initiatives aimed at enhancing efficiencies in its dealing and risk management operations.
Front adds back-office capability to Arena
Front Capital Systems, a Stockholm-based operating unit of Pennsylvania-based technology company SunGard, will finalise development of a new back-office capability next month that it will offer as part of its flagship trading system, Front Arena.
European telco news hits default swap market
European telecoms are back in the headlines this week, causing a surge of buying and selling activity in the market for default protection on active names. Rumours of a possible merger between Olivetti and Telecom Italia have intensified over the week…
Fimat appoints Zeltwanger as US chief executive
International derivatives brokerage house, Fimat, has named Cynthia Zeltwanger, former general manager of the company’s Chicago office and chief operating officer of the US business, as the new chief executive of Fimat USA.
Caruana to replace McDonough as Basel Committee chief
Jaime Caruana, governor of the Bank of Spain, will replace William McDonough, president of the Federal Reserve Bank of New York, as chairman of the Basel Committee on Banking Supervision.
Isda muddies debt waters
The International Swaps and Derivatives Association (Isda) has finally released its 2003 credit derivatives definitions, which take effect on March 17.
Linkage between op risk measurement and management key, says Lawrence
The key question that operational risk managers must face is how they directly link op risk measurement to the process of op risk management, said Mark Lawrence, chief risk officer at ANZ Bank in Australia, today at the annual Operational Risk conference…
Fannie Mae to issue mortgage debt directly to foreign investors
Fannie Mae will issue foreign currency-denominated debt to help meet future house financing needs, the US secondary mortgage-market agency said today.
Eulia chief risk officer to run Prmia’s new Paris chapter
Christian Jimenez, chief risk officer for Eulia, the European Financial Alliance formed in 2002 by the Caisse des Dépôts Group and Caisse d'Epargne Group, will head the Professional Risk Managers’ International Association’s (Prmia) first Paris chapter.
Linkage between op risk measurement and management key, says Lawrence
Operational risk managers must face up to how they directly link op risk measurement to the process of op risk management, said Mark Lawrence, chief risk officer at ANZ Bank in Australia, today at the annual Operational Risk conference in London.
Creditex opens Asia-Pacific office
New York-based provider of credit derivatives data and trading services Creditex has opened an office in Singapore to cater for the growing credit derivatives market in Asia-Pacific.
ABN Amro expands structuring and advisory capabilities in Asia
Dutch bank ABN Amro has significantly bolstered its financial institutions and public sector group in Asia with the addition of 10 new hires, as it looks to extend its structuring and advisory capabilities across the region.
Reliant bows out of energy trading
Houston-based Reliant Energy has exited the energy derivatives trading market as a result of an $80 million trading loss it suffered at the end of February.