Credit risk
Sponsored feature: BNY Mellon – focusing clients on their core activities
Never has the need for efficient management around over-the-counter derivatives business been more crucial, or such a focus, as it is today. BNY Mellon discusses how, with its collateral management services, it has helped clients achieve greater…
Confusion over CVA
Dealers are becoming more disciplined in pricing credit – a lesson learned the hard way after the collapse of Lehman Brothers. However, banks are taking a variety of approaches, and some participants believe certain firms are habitually underpricing…
Through-the-cycle haircut in securities financing likely, says senior regulator
Supervisors look to keep a firmer grip on securities lending haircuts to prevent asset bubbles from forming.
Deal could trigger downgrade for E.ON US and subsidiaries
German power and gas company E.ON's decision to sell its US subsidiary to PPL Corporation for $7.625 billion has resulted in a ratings review and possible downgrade for E.ON US.
Flood of sovereign debt drowns out corporate bonds
Elevated government borrowing will be a fixture of the credit markets for the foreseeable future, as emergency spending and tax shortfalls heighten state financing needs. But could this excess supply of sovereign debt threaten demand for corporate bonds?…
Isda AGM: collateral drops 20% with market rebound
As the markets recover from the crisis, counterparties are using much lower levels of collateral, an Isda survey has found.
Committee hears of rating agency inertia as crisis built
Agencies were too slow to update ratings models during the crisis, Senators were told today.
Rating agencies under fire again in Congress
Research due to be presented today to a Senate subcommittee shows major rating agencies gave optimistic credit ratings to keep profits high.
Sovereign default the greatest threat: IMF
Sovereign default risk has soared and is the biggest threat to near-term stability, some segments of banking systems also present dangers
The price is wrong
As the basis between Libor and overnight index swap rates ballooned during the credit crisis, banks were forced to reassess methods for pricing collateralised and uncollateralised derivatives trades. The result is a move towards a new market standard in…
Lehman takes aim at guarantee claims
Lehman Brothers Holding Inc (LBHI) confirmed yesterday in its bankruptcy disclosure statement that there are doubts over the validity of third-party and affiliate guarantee claims that cite a pledge by the holding company to take on its subsidiaries'…
Credit data vendors focus on liquidity metrics
Vendors and their clients are focusing on the implementation of liquidity analytics to boost credit risk management
No guarantee from Lehman?
Lehman Brothers Holdings Inc is expected to challenge an apparent pledge to its subsidiaries to guarantee their liabilities and obligations. If successful, the bankrupt estate could render hundreds of billions of dollars worth of claims invalid, and even…
Crumbling relations
The so-called ‘Piigs’ countries – Portugal, Ireland, Italy, Greece and Spain – have been an ongoing source of worry for the financial markets in 2010. While the prospect of a Eurozone country being allowed to default appears low, insurers are under…
Bank of Spain denies Spanish banks are delaying losses by acquiring NPAs
The Bank of Spain defends Spanish banks' hands-on risk management of non-performing assets related to the property sector.
Basel Committee proposals could break IASB loan-loss deadlock
The Basel Committee has revealed its thinking on loan loss accounting to standard-setters and industry experts.