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Credit risk

DTCC set to launch automated payment reconciliation service

The Depository Trust and Clearing Corporation (DTCC) will this month introduce an automated payment reconciliation service. The move is one of a number of initiatives the US company has planned for the coming months aimed at reducing risk and improving…

time to cash in

Pension funds and others with cash to spare may look first at money market funds to park savings, but hedge funds are also seeing the benefits of using these vehicles

Bringing credit portfolio modelling to maturity

Michael Barco shows how to perform mark-to-market credit portfolio modelling by extending the well-known saddle-point technique, introducing spread and recovery rate volatility. He then tests his results on a fictitious portfolio, showing how asset…

No Nera for agencies

Moody's and S&P claim that a recently commissioned study supports their belief that not all agencies' ratings are equal. Fitch, meanwhile, takes a different line of argument. Saskia Scholtes examines the notches that have driven a wedge between the…

BNP Paribas tailor-makes Japanese CDS index

French bank BNP Paribas has created a sub-index to its CJ50 index of the 50 most liquid Japanese credit default swaps (CDS). Called CJ Flex, the sub-index is referenced on about 30 investment-grade credits, worth a total notional amount of more than ¥10…

Mind the gap

UK mortgage lenders are grappling with Basel II. But there are still concerns about a credit risk management gap between the large and small lenders.

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