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Risk magazine

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…

Risk corporate survey 2010

Price is still the most important factor for corporates when choosing which dealer to trade with. However, a wide divergence in pricing among banks means transparency is now a key issue. By Matt Cameron, with additional research by Alexander Campbell,…

Happier times for distressed assets?

The distressed assets sitting on the balance sheets of financial institutions have increased in value in recent months, with a variety of firms reporting paper gains. Has the turning point been reached in distressed structured credit assets? Peter…

Dividend growth

Dealers and hedge funds were hammered by sharp falls in dividends during late 2008 and early 2009. Since then, liquidity has recovered as a wider range of market participants take advantage of the dislocation. Mark Pengelly reports

Reconsidering the fixed-floating mix

Yield curves for sterling, the euro and the dollar are the steepest they have been for well over a decade, leaving companies with outstanding fixed-rate debt and large amounts of cash on balance sheets facing significant negative carry. Many corporates…

Contingency plans

Following recent issues of contingent capital by Lloyds Banking Group and Rabobank, other firms are eyeing similar issuance as a means of meeting higher capital requirements in a cost-effective way. But the Basel Committee, which is due to discuss the…

A sting in the tail

After recent financial turmoil, market participants are thinking much more rigorously about ways to protect themselves against the possibility of rare but extreme events. However, effectively hedging tail risk is not straightforward. By Mark Pengelly

Ticked off with the uptick rule

The US Securities and Exchange Commission revealed a revised uptick rule in February, eliminating a key exemption for options market-makers. But some participants say these new rules will impede liquidity and price efficiency in US options markets. Peter…

The problem is severity

Financial reformers talk endlessly about the too-big-to-fail problem, but they often fail to address the heart of the issue, argues David Rowe

Mastering sharia

The International Swaps and Derivatives Association and the International Islamic Financial Market published the long-awaited Islamic master agreement in March after more than three years of negotiations. Market participants welcome the document, but say…

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