News
Cat bonds issuance expected to pick up
Issuance of catastrophe bonds (cat bonds) is expected to rebound in the early part of this year after a quiet fourth quarter in 2008, according to New York-based reinsurance specialist Guy Carpenter.
Swiss Re seeks capital injection after securitisation hit
Zurich-based reinsurer Swiss Re suffered writedowns of SFr 6 billion ($5.1 billion) linked to its legacy securitisation portfolio, according to its preliminary report for 2008.
Deutsche hit by €1.7 billion equity derivatives losses in Q4
Deutsche Bank confirmed a net loss of €4.8 billion for the fourth quarter of 2008, bringing total losses for the year to €3.9 billion, compared with a net income of €6.5 billion in 2007. Year-on-year net revenues for the quarter fell from €7.3 billion in…
Auction sets final settlement values on Sanitec LCDS
An auction run by data vendor Markit and broker Creditex has determined final settlement values for credit derivatives trades referencing Sanitec first- and second-lien loans.
Operational risk experts ponder future of Basel II
The ongoing financial crisis has led risk professionals to question whether the Basel II framework needs to be modified to improve firms' ability to assess and manage risk. And while the general consensus is that revisions are needed, questions remain as…
European CDS regulation 'inevitable' - EC official
Daily news headlines
US Wrap: Reverse convertibles come bouncing back
Sixteen new issues were launched into the US market yesterday, doubling Monday's issuance. Barclays Bank offering 8 convertible notes on a smattering of underlyings including the US Oil Fund, Goldman Sachs stock, the equity of electronics retail chain…
The fight is on for LCH
US clearing giant, The Depository Trust & Clearing Corporation (DTCC), insisted on Tuesday that a merger with London-based clearing house LCH.Clearnet would be completed by the end of March, despite a possible rival bid.
Clearing CDS for lift-off
A new single-name North American credit default swap (CDS) contract, due to be launched next month, is expected to bring greater standardisation to the market and pave the way for central clearing.
SEC incompetence and secrecy over Madoff enrages Congress
The fraud examiner who spent eight years warning about Bernard Madoff's alleged Ponzi scheme has blamed institutional incompetence within the Securities and Exchange Commission (SEC).
European CDS regulation 'inevitable' - EC official
The European Commission (EC) is moving ahead with plans to enforce central clearing of credit default swaps (CDSs), despite a plea by the International Swaps and Derivatives Association (Isda) to resume dialogue on the issue.
DGCX plastics contracts launch postponed
The launch of two new plastics futures contracts at the Dubai Gold & Commodities Exchange (DGCX) has been delayed.
ECX to launch spot contracts in March
The European Climate Exchange (ECX) and ICE Futures Europe will launch daily futures contracts for EUA and CER emissions credits "sometime in March", according to ECX CEO Patrick Birley.
The fight is on for LCH
US clearing giant The Depository Trust & Clearing Corporation (DTCC) has insisted that a merger with London-based clearing house LCH.Clearnet would be completed by the end of March, despite a possible rival bid.
JP Morgan CDS pricing model to be made available via Isda
JP Morgan's credit default swap (CDS) Analytical Engine will be released as open source code soon via the International Swaps and Derivatives Association (Isda). Isda believes the model - which is used to price CDS contracts - will increase transparency…
Eurex trading volume nudges ahead of CME
A 41% drop in trading volumes compared with the previous year put CME behind Frankfurt-based Eurex in January 2009.
CDS spreads fall on Spanish energy
The cost of credit protection on Spanish energy firms plummeted in early trading this morning and confidence in the Japanese electronics sector began to return.
Federal Reserve extends liquidity programmes
The Federal Reserve has extended the deadline for its existing liquidity programmes by six months, to October 30, in a sign of continuing strain on financial markets.
Deutsche takes 12 from Merrill Lynch
Twelve senior bankers have left Merrill Lynch to join Deutsche Bank's institutional group, as Merrill's former CFO steps down.
Primus takes hit in Q4
Primus Guaranty, the Bermuda-based parent company of the first standalone credit derivatives product company, saw a net loss of $918.5 million in the fourth quarter of 2008. This result compares with a net loss of $403.9 million in the corresponding…
Obama ties executive pay caps to bail-out funds
President Barack Obama on Wednesday unveiled a compensation cap of $500,000 for top executives at firms receiving "exceptional assistance" from the US government.
RBS chairman departs earlier than expected
Royal Bank of Scotland's (RBS) chairman, Tom McKillop, has stepped down two months earlier than he intended.
US Wrap: Blizzard of secondary credit bolsters issuance
Counterparty risk is still high on the agenda within the US market, with half of new launches were underwritten by credit separate from the issuing institution. Barclays Bank, Goldman Sachs, and Citi all used either Eksportfinans or Swedish Export Credit…
Auction sets settlement values for LyondellBasell companies
An auction run by data vendor Markit and broker Creditex determined final settlement values for credit derivatives trades referencing three US-based subsidiaries of Netherlands-based chemical company LyondellBasell, today.