Credit risk
Clearing the obstacles
Credit quality is essential to every energy firm’s success, as recent problems at Aquila and Dynegy attest. Couple this with the post-Enron threat of increased regulation for OTC energy derivatives and it is clear that the energy trading market needs…
Running for cover
Energy
Beyond the pail
Basel accord
Isda requires CDS reference obligation specification at trade date
The International Swaps and Derivatives Association has decided that confirmations should specify reference obligations as of the trade date for credit default swap (CDS) transactions.
LCH and x-clear to launch pan-European CCP next year
The London Clearing House (LCH) and Swiss central counterparty (CCP) x-clear are to launch a pan-European CCP structure in March 2003 for pan-European cross-border equity exchange virt-x.
Credit Markets Update: Negative equity sentiment transmutes into wider spreads
European credit default swap spreads were wider this week, with investors buying protection as credit concerns and accounting scandals in the US contributed to negative investor sentiment that led to a further battering of stocks.
Credit Markets Update: France Telecom fluctuates in thin markets
The cost of credit protection on troubled telco France Telecom fluctuated this week within a 100 basis point range, causing knock-on effects on the spreads of other European telecoms in jittery markets that saw little trading activity. But positive…
Raft International
Technology
Rating agencies raise the bar
Confidence in energy traders has never been lower, and the metrics the rating agencies apply to their business are changing. James Ockenden assesses the damage
Change of focus as fixed managers look to LatAm
Interest has turned towards South America for fixed interest managers
The maturity effect on credit risk capital
In a mark-to-market approach to credit risk capital, ratings or spread volatility has the effect of making longer-maturity loans more capital-intensive. This is incorporated in the current Basel II proposals via a maturity adjustment factor. Arguing that…
IMF seeks scrutiny of insurers' credit risk
The International Monetary Fund (IMF) says greater information about insurers' financial markets activities – including credit risk transfers – is needed before their implications for financial stability can be clearly ascertained.
CLNs come of age
Technical
Equity poses the big questions
Roundtable
European telcos: mixed signals
Credit of the month
Tools for the trade
Credit Risk
Fitch hits back at Moody's in CDO ratings row
Rating agency Fitch moved to defend its standing in the collateralised debt obligation (CDO) rating market by slating the ‘notching’ practices used by rival rating agency Moody’s in a formal report yesterday.
Weaving an integrated solution
A treacherous credit environment and growing awareness of the danger of credit and market risk correlation have convinced financial institutions that they need to evaluate these exposures together. To get a unified view, will they need to adopt unified…
Taking a new career track
CDO managers
A whole new ball game
Credit Risk
Higher or lower?
Credit Risk
Avoiding over-exposure
Credit Risk