Credit risk
BP oil spill “frightening reminder” of tail risk, say analysts
As oil continues to spill into the Gulf of Mexico, analysts have warned there is little investors can do to hedge against the risk of disasters on the scale of the Deepwater Horizon incident.
Eurozone has two years to agree fiscal union, says DB Advisors
The viability of the Eurozone project continues to weigh on fixed income market, says chief investment officer of DB Advisors.
The risks of tailoring credit default swaps
Credit portfolio managers could tailor credit default swap hedges as financial guarantees to avoid accounting mismatches on their balance sheet. However, the technique exposes credit hedgers to increased costs and basis risk, argues Dirk Schubert
Investors concerned over German banks' exposure to southern Europe
Investors and economists have identified German banks’ exposure to Europe’s indebted peripheral sovereigns as a potential risk to state finances.
Contagion fears drive volatility
The takeover of a Spanish savings bank last month and rumours of funding difficulties at the country's financial institutions spook investors
Brussels calls for European ratings supervisor
European Commission proposes new body to oversee all credit ratings agencies operating in the European Union; security issuers must provide information to all agencies to boost competition
Credit ratings are a necessary evil: Gary Jenkins column
Credit rating agencies have been an easy target for investors’ ire – and in many cases the condemnation has been justified. But ratings perform an important function in the markets.
Market Analysis: Effective credit risk analysis
Market participants are conducting credit risk analysis on a growing number of counterparties, many of which are smaller, non-public and unrated firms, says S&P.
Valukas' findings challenged by Lehman lawsuit against JP Morgan
Intra-day credit debate re-surfaces as Lehman Brothers Holdings (Inc) (LBHI) accuses JP Morgan of coercing it into agreements that allowed JP Morgan to get hands on collateral
Deutsche Bank halted sovereign CDS trading after Bafin ban
The German bank was not the only dealer to have temporarily put a stop to eurozone sovereign credit default swap trading
Industry disappointed by lack of clout in CCP standards
Dealers complain a long-awaited draft of standards for derivatives clearing platforms fails to address key issues.
Sovereign ratings on UK, US, Japan under fire from credit investors
After Greece, Portugal and Spain suffered rating downgrades in April due to escalating fiscal problems, investors ask if the same standards are being applied to advanced economies.
Energy Risk: What's coming next?
Energy Risk brings you a snapshot of what's moving and shaking the markets with a special look at energy credit.
CVA desks trim hedges as bailout crushes CDS spreads
It was a hectic start to the week for CVA traders, as the eurozone bailout shrank the exposures many faced, leaving them over-hedged.
Portuguese insurers shielded from sovereign risk, claims regulator
A focus on high-grade corporate bonds in their investment portfolios is insulating Portuguese life insurers from the continued market pressure on the country's sovereign debt, according to Instituto de Seguros de Portugal (ISP), the country's insurance…
European banks count the cost of sovereign exposure
As Greek debt continues to fall, banks are assessing their vulnerability to the crisis spreading across Europe.
Investors dispute claims sovereign downgrades were hasty
Senior EU officials may have criticised the rating agencies for reacting too aggressively to Europe’s fiscal woes, but investors say the reverse is true and the agencies remain behind the curve.
New approaches to energy credit risk management
The aftermath of the financial crisis led to some innovative approaches to tackling energy credit risk. Pauline McCallion looks at developments and asks whether proposed US and European regulation will help or hinder innovation in this space
Greece faces legal problems in exiting Eurozone
If the €110 billion International Monetary Fund-Eurozone bailout fails and Greece is forced to dump the euro, legal experts say there would be no easy way out of its euro-denominated debts.