
Risk linked with Asian banks ‘mispriced’, says RBS
RBS estimates that Asian banks account for 2%, or $2.8 billion, of the global $140 billion in write-downs linked to exposures from subprime and collateralised debt obligation. “Just two banks in Asia have experienced negative ratings actions as a result of the crisis,” the report said. These banks are Japan’s Mizuho and Hong Kong’s Citic Ka Wah Bank.
The UK bank’s credit research team believes Asian bank debt will outperform Asian high yield corporate and sovereign debt as well as European and US bank debt in 2008.
The report, released on February 6, added that bank exposure to monocline insurers is similarly limited compared with the exposures of financial institutions in Europe and the US. Monocline insurers are used by market participants to wrap credit instruments to bolster the credit rating of structured instruments.
Large monolines like Ambac, MBIA and FSA are expected to lose their triple-A ratings unless they receive a bail out by a consortium of the world’s leading banks aimed at bolstering their flagging capital positions.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact info@risk.net to find out more.
You are currently unable to copy this content. Please contact info@risk.net to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@risk.net
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@risk.net
More on Regulation
US banks race against time as Fed plays climate catch-up
Long-awaited US climate risk exercise puts tough pressure on banks’ data and models
EU banks need ‘billions’ in hedges to pass new NII test
Declines in net interest income can be hedged, but the markets may struggle to handle the demand
CFTC chair gloomy over crypto legislation prospects
FIA Boca 2023: Behnam also asks Congress to grant more powers to regulate third-party tech providers
Missing Basel metric could have revealed SVB risks
US regulators did not implement economic value of equity test that SVB failed in 2021
Strict term SOFR trading rules ‘permanent’ says Fed’s Bowman
Official says restrictions on use of term SOFR swaps “should not be expected to change”
Esma still wants more tools to tackle clearing crises
Even after Emir 3 draft, EU regulator would like more powers over both foreign and domestic CCPs
Club rules? How German retail trading venues shut out PTFs
Murky rule books prevent non-bank market-makers from competing for Europe’s growing online customer demand
Regulated UK crypto firms fear authorisation Groundhog Day
Industry wants grandfathering in new Treasury framework to avoid business continuity risk