News
Freight derivatives market shifts further towards clearing
Fears of counterparty credit risk have led to a sharp migration towards clearing in the freight derivatives market over the past four months. The ratio of cleared forward freight agreement (FFA) trades to non-cleared over-the-counter trades in the last…
Hedge funds' lack of op risk disclosures a concern
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US Wrap: Growth products lead the pack
Nine deals were filed and launched in the US structured products market yesterday, with half the issuance made up by accelerated growth products. JP Morgan fed the confounding appetite for US equity exposure with a 300% leveraged participation rate in…
Clearing single-name CDSs may prove uneconomical
High margin requirements may make central clearing of single-name credit default swaps (CDS) impossibly expensive, according to one clearing specialist.
BoJ plans to inject $34bn to aid corporate funding
The Bank of Japan (BoJ) has become the latest central bank to unveil plans aimed at bolstering the corporate debt market, with plans to buy up to ¥3 trillion ($33.7 billion) of outstanding commercial paper (CP) to help ease funding pressure suffered by…
Thain departs BoA within a month of merger
John Thain, Merrill Lynch's former chairman and chief executive, is the second investment banking head to leave Bank of America (BoA) since the two banks' merger closed on January 1.
Cash-settlement auctions working, says Isda
The auction process for cash-settling credit derivatives trades has been tested recently but is working well, said Bob Pickel, chief executive of the International Swaps and Derivatives Association, at a symposium held by the organisation in New York on…
ABN Amro claims second victim in Fortis
Benelux bank Fortis today revealed a net loss of €14.1 billion for the first nine months of 2008, due mainly to its acquisition of parts of ABN Amro.
CDSs widen on European insurers
The cost of credit protection on European insurance and reinsurance companies rose in this morning's trading.
SHKF buys back clients' minibonds
Hong Kong-based Sun Hung Kai Financial (SHKF) has agreed to buy back all the Lehman Brothers credit-linked minibonds it sold to retail investors. The decision follows an investigation by the territory's Securities and Futures Commission into possible mis…
UK FSA chairman Lord Turner outlines agenda for regulatory reformation
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ECB chief Trichet 'stands ready' for supervisory powers
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Trading book capital must be "several times" higher, FSA says
Capital requirements for assets held on the trading book should be "several times" higher than at present, according to the chairman of the UK Financial Services Authority, Adair Turner.
Citi replaces chairman
Citi has named Richard Parsons, lead director and chair of the board's nomination and governance committee, as the successor to its chairman, Win Bischoff, effective February 23.
S&P unveils CDS indexes
Index provider Standard & Poor's Index Services (S&P) has launched three US credit default swap (CDS) indexes designed to evaluate the performance of the credit derivatives market.
UBS exits exotic structured products business in FICC
UBS is shutting down its exotic structured products business within its fixed income, commodities and currencies (FICC) division.
Calls for bank chiefs to repay bonuses
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Fund-linked hedging bolsters redemption requests
The rise in redemptions across the hedge fund industry is being exacerbated by the hedging of fund-linked options and constant proportion portfolio insurance (CPPI) products, according to dealers.
SSE and Iberdrola join forces for UK nuclear
UK utility Scottish and Southern Energy (SSE) has joined forces with Spanish utility Iberdrola to help kick-start the UK's nuclear new build programme. They will begin by securing potential sites for nuclear power stations and work alongside UK…
Buy-side firms scramble to meet novation deadline
Derivatives technology vendors have reported a significant upturn in activity among buy-side firms, looking to meet a February 28 deadline for processing all credit derivatives novation consents through electronic platforms.
King lays out details of Bank of England debt purchases
The Bank of England will start to buy up corporate debt and commercial paper within the next few weeks, governor Mervyn King announced last night.
UBS names Japan country head and Asia vice-chairman
UBS has named Toshiharu Kojima as its first-ever country head for Japan, as well as chairman and chief executive of UBS Securities in Tokyo. Timothy Chia will become Asia vice-chairman of the investment banking division in Singapore.
CDSs widen on Australian banks, Spanish energy
The cost of credit protection on Spanish energy firms and Australian banks soared in early trading this morning while market sentiment towards US auto makers improved.
Algorithmics, RMA and RiskBusiness unite op risk resources
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