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Credit risk

Catch 22 for corporate liquidity

Companies facing relatively minor business difficulties are being shut out of the commercial paper market, forcing their treasurers to scramble for alternative financing to avoid insolvency. Is there any way to manage this liquidity risk?

Fannie and Freddie – a look under the lid

Fannie Mae and Freddie Mac are two of the largest and most sophisticated participants in the US interest rate derivatives market. But criticism of their risk management has been growing. Is the market safe?

The risk breaker

To claw its way back from its problem-loan nadir in the late 1990s, Bank of America embraced risk-adjusted return metrics and credit risk distribution techniques. Amy Brinkley is overseeing its turnaround.

Moody's launches LossCalc

Moody’s Risk Management Services (MRMS) claims that its latest product, LossCalc, is the first risk management tool to predict loss-given default (LGD) for investors in the event of a company’s bankruptcy.

Building for Basel

The 2005 implementation date for the new Basel II Accord – already postponed by a year – is looming large. Whilst the banking sector is steadily gearing up for the proposed changes, there are fears that some institutions may be left behind.

Building for Basel

The 2005 implementation date for the new Basel II Accord – already postponed by a year – is looming large. Whilst the banking sector is steadily gearing up for the proposed changes, there are fears that some institutions may be left behind.

A spanner in the works

The US and Germany are in a standoff over Basel II’s capital charge calculation for SME lending. Without a compromise this month, the issue threatens to derail implementation of the Accord and the European Directive.

ING Barings debuts with synthetic CDO in Asia

ING Barings, the investment banking arm of Dutch bancassurer ING, has arranged what it claims to be the first arbitrage synthetic collateralised debt obligation (CDO) transaction managed by a portfolio manager in Asia, in an attempt to cater to the…

S&P offers CDO manager ratings on the Web

International debt rating agency Standard & Poor’s (S&P) has begun offering evaluations of collateralised debt obligations(CDOs) managers for free on its website. While the move appears timely given the current turbulent environment for non-investment…

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