Risk magazine - Volume21/No5
Articles in this issue
Banks urge pro-cyclicality review
The subprime crisis has sparked fears that regulators may insist on banks holding higher regulatory capital, a result some bankers insist would choke off lending and push the global economy into a recession.
On thin ice
Following the near-collapse of Bear Stearns, even trades conducted with interbank dealers can no longer be considered risk-free. With so much of the derivatives market concentrated in the hands of a few dealers, what would happen if a major counterparty…
BoE reveals £50bn liquidity facility
Banks have welcomed a scheme by the Bank of England (BoE) aimed at improving the balance sheets of UK financial institutions. The £50 billion facility, announced on April 21, will allow financial institutions to swap illiquid mortgage-backed securities…
Power to the people
Losses and lawsuits
Derivatives face regulatory scrutiny
The derivatives industry faces a period of heightened scrutiny by regulators, mirroring the supervisory review in the wake of a series of mis-selling scandals in the 1990s, warn bankers.
Grid computing was seen as the answer to resource-intensive risk management tasks, such as derivatives pricing, scenario simulation and stress testing. But some firms are now looking at cloud computing - vast collections of computing and data resources…
Call of duty
Margin of error
BIS to modify Basel II rules
The Basel Committee on Banking Supervision is to make changes to the Basel II capital framework in response to the ongoing financial crisis. The modifications are expected to include the upping of Pillar I regulatory capital requirements, as well as the…
Tails of the unexpected
A long road ahead
Credit derivatives volumes continue to rise
The credit derivatives market grew by 81% in 2007 to reach $62.2 trillion in outstanding notional, according to figures from the International Swaps and Derivatives Association.
EC outlines changes to CRD
The European Commission (EC) has launched a public consultation on more than 50 technical changes to the Capital Requirements Directive (CRD).
British Airways' Group treasurer, George Stinnes, talks to Alexander Campbell
FSF calls for rating agency changes to aid market
Banks, investors and rating agencies are bracing themselves for a barrage of new regulatory guidance, consultation papers and capital charges in the wake of a report by the Financial Stability Forum (FSF) on April 12, which made a series of…
Regulators push for operations changes
The derivatives industry is facing regulatory demands to improve operations-related issues. In recent weeks, both the President's Working Group on Financial Markets (PWG) and the Financial Stability Forum (FSF) have pushed dealers to enhance the…
Finding a balance
Really too big to fail?
Are bulge-bracket investment banks really too big to be allowed to fail? Despite the upheavals such a failure would cause, the consequences may have been overblown, argues David Rowe
Banks pushed to change incentives
Banks are coming under increasing pressure from regulators, politicians and bank shareholders to review their pay and bonus structures to ensure traders are not incentivised to take excessive risks.
Dealers work towards clearing house for credit default swaps
A group of dealers hoping to avoid the systemic implications of counterparty risk is working with the Clearing Corporation on establishing a central clearing house for certain credit derivatives products.
Equity correlation – explaining the investment opportunity
RICI© – Enhanced SM Index
Absolute return strategies
Death by association
Taxing times for ETNs
Room for skew
Catching a cold