Credit risk
European capital rules could squash CVA feedback loop
European capital rules could squash CVA feedback loop
Eurex to offer full segregation in March launch of OTC clearing
Eurex Clearing plans to be the first OTC clearer to offer full segregation of collateral when it launches in March - demand has risen since MF Global collapse
Basel 2.5: US ratings workaround criticised
Workaround woes
Conversion of upfront CVA into running CVA
Conversion of upfront CVA into running CVA
Japan still backs EFSF despite threat to AAA rating
The expectation that Standard & Poor’s decision to downgrade France and Austria will have a knock-on impact on the EFSF will not deter further Japanese investment in its bonds, says Japanese official
The dollar dominance dispute
Disputes over the valuation of collateralised derivatives trades have pushed the industry to develop a new standard credit support annex. A solution has been proposed – but some Asian banks have raised concerns about the dominant role given to the US…
European Insurers face downgrades amid continuing sovereign debt crisis
Generali subsidiaries and Groupama receive downgrades; Aviva placed under review
The CVA-CDS feedback loop
The CVA-CDS feedback loop
Quants call for Isda to clarify close-out values
Leading quants highlight ambiguity in Isda master agreement - but warn that resolving the issue could worsen systemic risk
Cutting Edge introduction: clarity needed on credit adjustments
Credit and credibility
Cutting Edge: the year of CVA
The year of CVA
Close-out convention tensions
Close-out convention tensions
New standard CSA too dollar-centric, say Asian banks
Banks in Asia-Pacific complain about dollar dominance in new standard CSA – prompting Isda to rethink its plans
MF Global: non-US clients caught in cross-border collateral trap
Omnibus structure meant clearing clients of MF Global outside the US were asked to double up on collateral payments. Use of the structure for OTC markets is now in doubt
Is asset-backed credit support an option for energy firms?
Coming up with the money
Eksportfinans faces collateral questions following downgrade
Junk-rated export lender says it has enough reserve liquidity to meet obligations while it is being wound up - but dealers are not convinced
ECB offers CSDs financial incentives for early T2S adoption
European Central Bank offers central securities depositories (CSDs) financial incentives to sign up to T2S early; governing council gives CSDs until the end of April to agree
Banque de France outsources collateral management
French central bank agrees collateral management deal with Euroclear France; entire French banking community will use new system next year
Commission unveils contentious Eurobond proposals
European Commission unveils three options for Eurobonds in bid to restore stability in Europe; analysts say the measures are politically unviable and ineffective
EU proposals for credit ratings rules require close monitoring by hedge funds
Draft language could affect the way hedge funds perform their own internal credit analysis
Sean Kavanagh leaves Deutsche Bank for Citi
Loan risk manager takes newly created job as head of credit portfolio management at Citi