News
Interbank confidence falls in the US, rises in Europe
The cost of dollar lending in the interbank market rose 17bp overnight, but the cost of euro and sterling borrowing was down marginally today.
Asian hedge fund business may halve
The hedge fund business in Asia is set to shrink by 33-50% in managed assets during the coming year, as fund managers face redemptions and struggle to put on successful trading strategies that do not require significant amounts of leverage.
CDS market mixed for eurozone and US financials
Credit default swaps (CDS) referencing UK and European financials faced varied market sentiment in early trading today.
Former UBS executives return bonuses
Senior employees who have left the troubled Swiss banking group UBS in the last year have waived or repaid SFr70 million ($58 million) in salaries and bonuses.
Munich Re creates CFO post in Asia
German reinsurer Munich Re has relocated Annett Rittershaus to Hong Kong to take up the newly-created post of regional chief financial officer (CFO) for greater China and southeast Asia.
Mortgage fraud losses 'in the hundreds of millions'
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UK power project chooses Nasdaq OMX and Nord Pool
The long-running Futures and Options Association (FOA) UK power market design project, aimed at boosting liquidity in the UK's forward power market, has chosen Nasdaq OMX Commodities and Nord Pool Spot to deliver a platform for trading and clearing…
Popular volatility indexes plunge
Record high levels of volatility in the equity market since September have caused huge losses on popular indexes that allowed investors to take short implied volatility positions.
QFII redemptions rise as crisis spreads
Concern over the health of financial markets has led to "a lot of redemptions" from qualified foreign institutional investor (QFII) bond funds, despite their strong performance versus other China-Hong Kong investment schemes, according to Andrew Fung,…
ECB no longer accepts syndicated loans as collateral
The European Central Bank (ECB) has removed syndicated loans governed by English law from its list of collateral eligible for its credit operations only four days after they were originally accepted.
Overnight euro Libor unaffected by news of €200 billion EU support
Overnight euro Libor remained unchanged from yesterday at 2.9%, despite the announcement a €200 billion stimulus package to shore up the struggling economies of European Union (EU) member states.
CDS market more liquid in times of stress - Fitch
The credit default swap (CDS) market becomes more liquid during periods of market stress, according to research conducted by Fitch Solutions, a valuation and product development division of Fitch Ratings.
CDS spreads down on European and US financials
UK and European banks saw improved market sentiment this morning, while the cost of credit protection on US financial institutions fell yesterday.
Treasury urged to sell £100 billion in RMBS guarantees
A senior advisor to the Chancellor has called for the UK Treasury to guarantee £100 billion in residential mortgage-backed securities (RMBS) over the next two years in order to revitalise the UK mortgage market.
Macquarie Bank next to issue Pillar III disclosure documents
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ABA calls for action on mark-to-market accounting
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FSA paper raises retail standards
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Primus downgrade raises questions over CDPC model
Under threat of delisting from the New York Stock Exchange, Primus Financial Products, a leading credit derivatives product company (CDPC), has started buying back $25 million of its own stock.
US government still has room to manoeuvre, analysts say
The US government's move to rescue beleaguered banking giant Citigroup will not impair its ability to bail out other banks.
US sovereign CDSs rise as financials face mixed market
Credit default swap (CDS) spreads on eurozone and US financials experienced mixed market sentiment in early trading today and before market close yesterday, while CDSs referencing US sovereign debt rose by 5.5 basis points today.
Interbank markets stabilise despite 'unprecedented' volatility
Volatility in the US equity market is at near-record levels, but the interbank market remained stable today.
Iosco to tackle trading abuses
The International Organisation of Securities Commissions (Iosco) will crack down on "trading abuses", according to technical committee chairman Christopher Cox.
FDIC reports rise in problem banks
There are now 171 banks on the US Federal Deposit Insurance Corporation (FDIC)'s 'problem list', the largest number since 1995, the FDIC revealed yesterday.
China slashes interest rates
China has taken further action to stimulate its economy, with the central bank cutting its one-year lending rate by 108 basis points to 5.58% and the deposit rate by the same amount to 2.52%.