Credit risk
Revitalising the markets
Governments are facing unprecedented pressure to finance bank rescue schemes through huge debt issuance. With supply coming thick and fast, the UK Debt Management Office (DMO) has been steering a hazardous path to place its debt into the markets. Until…
Simple structures
An increase in risk premiums on sovereign debt is giving banks a headache in pricing certain credit-related structured products. Investor appetite for such deals is in evidence, but mainly for simple, unleveraged products. Sophia Morrell reports
Financial pricing for the 21st century
Putting a price on assets for which no active market exists is a process mired in complexity and no little controversy. But the pricing models of yesteryear are simply not up to the job. David Patrikarakos looks at the new generation of valuation models…
The sovereign state
While the sovereign market has in the past been most readily associated with rates investors, it has always been a key part of the credit sector, most importantly as a benchmark for the pricing of corporate bonds. But credit default swap levels on…
Legal Spotlight
CDS dealers are under pressure to come up with a market-led solution to the clearing conundrum before regulators force one on them. Peter Green and Jeremy Jennings-Mares report
Ratings redux
Rating agencies have been lambasted for perceived failings in their collateralised debt obligation (CDO) rating methodologies. The leading agencies have published revised methodologies, but has it swung too much the other way? With the CDO market in the…
Exchange-traded transparency
Cover Story
Fanciful funding
Credit default swaps
Japanese exchanges move to set up CCPs next year
Risk mitigation systems for over-the-counter derivatives set to go live in 2010
NYSID causes first monoline CDS default
An auction is to be held to settle credit derivatives linked to Syncora, the monoline formerly known as XL Capital Assurance, after a committee declared a credit event to have occurred on the firm on May 1.
CDS: Spreads narrow on financials, ICICI trading under 400bp
Credit default swap 5-year mid-levels for structured products issuers (Thursday April 30)
CDS: US banks narrow
Credit default swap 5-year mid-levels for structured products issuers (Wednesday April 29)
BoE stability chief: Financial network needs 'rethinking'
The growth of complexity and widespread pursuit of similar products and strategies has created a fragile financial network in need of reform, according to a senior Bank of England (BoE) official.
CDS: US bank spreads continue to widen
Credit default swap 5-year mid-levels for structured products issuers (Tuesday April 28)
CDS: Spreads remain stable but BofA widens to 294bp
Credit default swap 5-year mid-levels for structured products issuers (Thursday April 23, Friday April 24 and Monday April 27)
City of London defends OTC derivatives markets
Political pressure for reform risks crushing the over-the-counter derivatives market, warns a report published today by the City of London.
European CDS dealers to follow US to fixed coupons
An agreement between the major dealers to move to standardised fixed coupons for trading European credit default swaps (CDSs), following a similar move in North America, could speed global moves towards central clearing, say market participants.
CDS: Bank spreads narrow
Credit default swap 5-year mid-levels for structured products issuers (Wednesday April 22)
Isda AGM: US regulator identifies six weaknesses in OTC market
Theo Lubke, senior vice-president at the Federal Reserve Bank of New York, identified six main problem areas in the over-the-counter derivatives market during a panel discussion on public policy at the International Swaps and Derivatives Association's…
CDS: Spreads widen further on financials
Credit default swap 5-year mid-levels for structured products issuers (Tuesday April 21)
Isda AGM: trillions in derivatives torn up since June
Multilateral tear-up efforts continue to bear fruit, with notional outstanding reduced by several trillion dollars, according to a report released by the International Swaps and Derivatives Association at its annual general meeting in Beijing.
CDS: US bank spreads widen
Credit default swap 5-year mid-levels for structured products issuers (Monday April 20)
CDS: Spreads narrow on US banks, BofA trading at 240bp
Credit default swap 5-year mid-levels for structured products issuers (Thursday April 16)