Credit risk
Costs could deter hedge funds from learning Lehman lessons
Cutting counterparty risk has a price tag that might prevent smaller funds from changing their ways, experts fear
ECB’s González-Páramo highlights flaws in collateral framework
European Central Bank executive board member José Manuel González-Páramo acknowledges risks in central bank’s willingness to accept broad range of collateral
NAIC opts for macroeconomic based approach for CMBS
US insurance regulators turn their focus to CMBS
'An explosion of sovereign debt'
'An explosion of sovereign debt'
US municipalities wary of two-way CSAa
Cornered on collateral
Spanish debt office in negotiations on credit support annex thresholds
Government agency looks to alleviate funding costs for bank counterparties in swaps transactions.
Low liquidity is the new norm for portfolio managers: Caveat Emptor column
Portfolio managers accustomed to building books in neat blocks of $50 million may struggle to unwind such positions in the new liquidity-starved secondary markets.
LBO companies face debt restructuring risk – Pimco's Jessop
The executive vice-president and portfolio manager at Pimco talks about the asset manager’s plan to broaden its high yield offering, and where he sees the current risks and opportunities in that market.
CVA and the equivalent bond
CVA and the equivalent bond
Asian banks in OTC derivatives reconciliation drive
Efforts by Isda and international banks to get Asian counterparties to use portfolio reconciliation services for OTC derivatives are starting to pay off
European insurers would need regulatory action to survive Greek default
Fitch Ratings stress test concludes that eight european insurers would require "further analysis" after sovereign risk fallout
Credit rating agencies: A question of trust
Question of trust
Solvency II poses bigger danger to economic stability than bank refinancing
Refinancing risk dwarfed by Solvency II’s impact on insurer appetite for corporate debt
Standard & Poor's Angel leaving company
Executive managing director Tony Angel is leaving Standard & Poor's after two years
Asia Risk 15: Credit derivatives perform vital role but at heavy cost
The emergence of credit risk mitigation techniques has enabled banks to continue lending while easing their concentration risks. But this has come at a heavy cost, as investors in many complex, leveraged synthetic structures discovered following the…
Asia Risk 15: Derivatives netting not fully in place in Asia
The standardisation and enforceability of documents represents a cornerstone of the over-the-counter derivatives market in Asia. But as the sector continues to grow, risk mitigation from close-out netting has yet to gain legal certainty in many …
The end for one-way CSAs
Sovereign derivatives users have been able to avoid posting collateral to their dealer counterparties in the past, but pending reforms to bank capital and funding rules are changing the equation. If sovereigns refuse to budge, they will have to accept…
Basel CVA changes criticised
The Basel Committee on Banking Supervision has adapted its proposals for a capital charge on counterparty risk following industry feedback, but banks were hoping supervisors would go further. By Mark Pengelly
ECB closes in on inferior collateral with new haircut scheme
European Central Bank’s new discount schedule increases haircuts levied on troublesome collateral, such as asset-backed securities; analysts expect move to discourage pledging of risky assets
Basel counterparty risk charge to be reworked
Several aspects of Basel counterparty risk charge up for revision, including calibration and index hedges
Cross-border collateral may alleviate dollar funding strains: Emeap
Executives’ Meeting of East Asia Pacific Central Banks says crisis revealed shortcomings in regional money markets; swaps deals, cross-border collateral could alleviate some problems
Portuguese debt office agrees to post collateral to its dealers
Agency becomes one of first developed-market sovereigns to succumb to dealer pressure as costs of one-way collateral postings grow
ICBC’s Wang warns on eurozone debt contagion and Chinese property fears
In a contribution to Asia Risk’s 15th anniversary edition, Wang Lili, executive director and senior executive vice-president of Industrial and Commercial Bank of China, cites the European sovereign debt crisis as a key risk management challenge for…
CFTC rules increase credit risk
Proposed rules to limit leverage on margin FX trading accounts at retail forex brokers will have the unintended consequence of increasing counterparty risk, according to Josh Levy, managing director at Tactical Asset Management.