News
UK bank CDS spreads tighten on bailout news
The cost of credit protection on UK banks fell in early trading on Wednesday following the unveiling of a £50 billion recapitalisation plan by the UK government.
CME and Citadel plan CDS exchange
Chicago-based exchange operator CME Group and hedge fund management firm Citadel Investment Group are set to launch a fully integrated trading and clearing platform for credit default swaps (CDSs).
"Fear index" hits high as Ted spread breaks 4%
The Ted spread, which tracks the difference between three-month Libor and US Treasury bills, hit yet another all time high today, reaching 4.03% at 1400 BST.
Rate cut not meant for financial markets, central banks say
Central banks around the world cut interest rates in the latest attempt to shore up the weakening economy today.
UK government unveils £50 billion bank recapitalisation plan
The UK government this morning announced a jumbo rescue package to recapitalise the country’s ailing banking sector.
G30: regulation struggling to keep pace with modern finance
Financial regulation in many countries has been unable to cope with the speed of change in the financial services industry over recent decades, according to a report released on October 6 by the Group of Thirty (G30).
TriOptima reconciling 50% of collateralised OTC derivatives
Swedish technology company TriOptima’s portfolio reconciliation service, TriResolve, now reconciles more than 50% of all collateralised over-the-counter (OTC) derivatives transactions globally, up from 40% in June.
Federal Reserve to buy commercial paper from US banks
The US Federal Reserve has launched a new facility to purchase commercial paper from approved issuers in a further effort to provide liquidity to stricken bank funding markets.
Fed to treble lending
The Federal Reserve increased its Term Auction Facility (TAF) auctions by $300 billion on Monday, and expects its lending to reach $900 billion by November; three times the amount of liquidity provision given to date.
Auction determines settlement price for Fannie and Freddie
An auction to determine settlement prices on credit derivatives referencing Fannie Mae and Freddie Mac took place yesterday, making it by far the largest credit event fixing to have taken place since the process was first introduced in 2005.
Fannie and Freddie auctions raise questions about CDSs
The settlement prices on credit default swaps (CDSs) linked to Fannie Mae and Freddie Mac, determined at an auction yesterday, were heavily influenced by technical factors and raise questions about the efficacy of credit derivatives as a hedge, claim…
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.