News
Europe's credit outlook remains bleak, says S&P
The most severe stage of the credit cycle may be over, but the creditworthiness of European companies and institutional borrowers will remain weak in 2003, according to rating agency Standard & Poor’s.
Academic voices dissatisfaction with Basel II
The Basel Committee on Banking Supervision still has a great deal of work to do before the Basel II capital accord can be successfully implemented at financial institutions, Jacques Pézier, director of the risk management group of the ISMA Centre at the…
Nymex to launch OTC trading platform
The New York Mercantile Exchange (Nymex) said it plans to introduce a trading platform designed for over-the-counter energy market participants in January, with beta tests beginning next week.
Lehman's prime brokerage to offer clients RiskMetrics tools online
Lehman Brothers' global prime brokerage unit will offer RiskMetrics' RiskManager tool to hedge funds, fund of funds and investors via its website, LehmanLive. The RiskManager service features value-at-risk, stress testing and 'what-if' scenario…
JP Morgan Chase and UOB Asset Management close $1.7 billion synthetic CDO
US bank JP Morgan Chase said today it has closed United Global Investment Grade CDO II, the largest synthetic collateralised debt obligation (CDO) managed by an Asian fund manager - Singapore-based UOB Asset Management. It is the second United Global…
Spreads widen on Munich Re, Aegon, BA Systems and Fiat
Credit default swap spreads widened this week on Munich Re, Aegon, BAE systems and Fiat. But traders said trading was thin and there was very limited movement in other credit spreads in the European market.
Japan credit default swap spreads tighten despite falling stock market
Credit default swap spreads in Japan continued to tighten this week, despite the equity market benchmark Nikkei index closing down every day since Monday, ending at 8,516.07, 347.19 points or 4% down on the week.
S&P slams Isda’s proposed changes to default swaps definition
Standard & Poor’s Ratings Services says it strongly objects to a proposed change in credit derivatives documentation language currently being considered by an International Swaps and Derivatives Association (Isda) working group.
Moody’s counters S&P report on UK bank stability
Moody’s today countered claims by rival credit rating agency Standard & Poor’s made yesterday that the UK banking system is vulnerable to financial stress.
Viability of UBS’ online energy trading in doubt
The future of UBS Warburg Energy’s online energy trading service UBSWenergy.com is in question, as the company took the trading website offline on December 10 and prepared to lay off 290 of the Swiss bank’s 380 Houston-based energy employees. Ninety…
Barra acquires FEA for $21.25 million
Barra, the Berkeley, California-based risk management technology vendor, said it acquired Financial Engineering Associates (FEA), the privately held sell-side options and risk analytics developer founded by Mark Garman, for $21.25 million in cash.
Icap raises £3.3 million in annual charity day
Icap, the world’s largest inter-dealer broker, raised more than £3.3 million on its 10th annual charity day yesterday.
JF Funds launches Hong Kong’s first retail hedge fund
Hong Kong-based fund manager JF Funds is launching a hedge fund targeted at Hong Kong retail investors, and is preparing to launch a second similar fund some time next year. The two hedge funds, JF Greater China Absolute Return Fund and JF Asia Absolute…
Daiwa signs up to use Reech Capital's valuation services
Dublin-based fund administrator, Daiwa Securities Trust and Banking (Europe), has signed a deal with Reech Capital, the London-based risk management technology company, to provide it with regular mark-to-market valuations of the over-the-counter (OTC)…
Fitch to investigate credit derivatives risk concentrations
Credit rating agency Fitch Ratings is concerned that the rapid growth and lack of transparency in the synthetic credit markets could be leading to alarming concentrations of risk with specific market participants.
Basel II to boost both large and small banks' loan prices
The prices of some loan products for retail and middle-market corporate clients will almost certainly rise when banks implement the Basel II capital Accord in 2006, according to speakers at Risk 's Capital Allocation 2002 USA conference this morning.
British and US banks placed on risk list
Banks in Britain and the United States are threatened by increased risks due to possible falls in asset bubbles, and are now vulnerable to financial stress, according to credit rating agency Standard & Poor’s (S&P).
iBoxx licenses indexes for exchange-traded funds
Frankfurt-based indexing company iBoxx and Pennsylvania-based exchange-traded fund (ETF) company iShares have struck a deal to license iBoxx indexes as the basis for European fixed-income ETFs to be launched on Deutsche Börse. The new products are…
Moody’s puts Natexis’ financial strength rating on review for downgrade
Credit rating agency Moody’s has placed the B- financial strength rating of Natexis Banques Populaires on review for possible downgrade, following the French bank’s confirmation late last week that it had made a significant loss at its structured equity…
IIF hires new deputy managing director
The Institute of International Finance (IIF) has named Peter McCarthy as deputy managing director with responsibility for regulatory activities.
Salame joins Tanemura as co-head of credit derivatives at Goldman
Goldman Sachs has promoted head of credit trading for Europe and Asia, Pablo Salame, to co-head of global credit derivatives alongside Ron Tanemura, who was previously sole global head of credit derivatives.
MBIA and S&P join war of words with Gotham over reinsurer’s AAA rating
Jay Brown, chairman of US monoline reinsurance company MBIA, entered into a row with Gotham Partners Management yesterday over comments made in a report issued by the US hedge fund. Brown called the report, which suggested MBIA should lose its coveted …
HVB downgrade forces spreads wider
The cost of five-year senior protection for HypoVereinsbank (HVB) widened by more than 10 basis points to 95/115bp yesterday after rating agency Standard & Poor's downgraded the German bank. The downgrade, along with another negative report on bank risk…
Ralfe to leave UK retailer Boots
John Ralfe, head of corporate finance at UK retailer Boots, has resigned from the company amid media speculation that he fell out with senior management over accounting and other issues related to the running of the company’s pension fund.