Credit risk
Irish bail-out fails to stem default fears
Credit default swaps on Irish debt continued to rise after the approval of €85 billion in EU aid.
Corporate bonds, not sovereigns, now the safe haven – L&G
Corporate bonds new safe haven – L&G
CFTC heeds buy-side demands for increased margin protection
The price you pay
Merkel's EU bailout plan threatens Basel’s sovereign zero risk weights
Discussions are already under way behind closed doors, knock-on effects for bank capital could be substantial
Irish bailout fails to restore faith in PIIGS debt
CDS spreads on peripheral eurozone debt widen despite €90 billion in aid
Asia Risk Congress 2010: CVA ‘less relevant’ for domestic banks
Panellists discussing the finer points of credit valuation adjustment (CVA) at the Asia Risk Congress 2010 said despite all the current talk about CVA in the region, it may prove to be less relevant for Asian institutions compared with their…
Market endorses 'elegant' CFTC proposal on margin
Legally segregated/operationally commingled approach to margin segregation attracts praise from buy- and sell-side.
Lehman opts to settle over Dante flip-clause transactions
Trustees relieved as settlement looks imminent
Credit investors will benefit from financials becoming more ‘utility-like’, says Pimco’s Spajic
With banks cutting leverage, increasing capital and changing their funding models, they offer good value for credit investors.
Sovereign two-way CSAs would probably resemble one-way posting, says Dutch DMO
High thresholds would reduce credit and funding benefits of two-way CSAs for banks, DSTA head says
Quant Congress Europe: Credit models linked to 'vicious circles'
Model risk comes from overuse of credit measures, as well as poorly constructed models, conference hears
Concern over scarcity of high-quality assets forces CCPs to broaden eligible collateral
Ice Clear Europe accepts gold for margin, while LCH.Clearnet is also working on extending eligible collateral
Insurers, not banks, driving liquidity trade
Insurance sector's hunger for high yields, rather than banks' thirst for short-term funding, driving liquidity trade
Dealer concern over proposed change to client margin segregation
Ice Trust estimates it might have to increase initial margin by 63% to cover risk.
Counterparty risk concerns drive Enel to bond market
Profile: Alessandro Canta
More discord over Basel III countercyclical buffers
Basel Committee’s Peter Praet acknowledges disagreement; Charles Goodhart warns lack of consensus will stop central banks acting to stem financial imbalances
Sponsored educational feature: Counterparty credit risk in portfolio risk management
Counterparty credit risk in portfolio risk management
CPM desks split on whether to reap windfall on hedges
The value of hedge books was hugely volatile during the crisis, forcing loan portfolio managers to think carefully about whether to monetise their gains. Those who chose not to saw windfall profits wiped out in a matter of weeks – but there’s still…
Ban on rehypothecation could increase derivatives costs
A number of hedge funds are now insisting margin posted on derivatives trades is not rehypothecated – a trend that could drive up costs
Corporates to drive EM growth but watch financial market development, say Credit Institute panellists
Panellists in the Credit Institute forum on ‘Sovereign or Corporate, Global or Local’ said that corporates will drive credit growth in emerging markets, but investors cannot afford to ignore financial market development or to forgo due diligence.
2010 Asia Pacific CVA Forum: Singapore going live with CVA, Korea next?
Domestic banks in Singapore are starting to set up CVA desks at the behest of their regulator, but elsewhere in Asia there are significant obstacles to CVA
Expect double-dip, not inflation, says CreditSights' Purtle
Chief strategist at CreditSights Louise Purtle warns that global deleveraging makes double-dip recession more likely than inflation.
EU bailout vehicle nets top credit rating
European Financial Stability Facility secures triple A rating
US financials a better bet than corporates, say investors
US corporate restructuring and balance sheet improvements have drawn investor focus to corporate credit. But technical factors make financials look attractive.