Risk magazine
Remake/remodel
The credit downturn has coupled with unprecedented fear over counterparty risk to stymie opportunities for credit derivatives product companies. Some market participants are investigating restructuring, but is there a way forward? By Mark Pengelly
Higher ground
Plans are afoot among global regulators to impose tougher regulatory requirements on large and systemically important firms, including higher capital charges. Will they succeed in curtailing systemic risk? Mark Pengelly investigates
Spreading fear
As credit spreads on financial institutions widened in the second half of 2008, some banks registered substantial gains on their own debt. The International Accounting Standards Board has subsequently ignited a debate over the inclusion of credit risk in…
Can-do
Julie Dickson, superintendent at the Office of the Superintendent of Financial Institutions in Canada, talks to Risk about how the country's regulatory framework has helped institutions weather the financial crisis. By Joel Clark
Autonomy or centralisation?
Regulators have drawn attention to the silo approach taken by many financial institutions, which hampered effective risk management across organisations. Mauro Maccarinelli and Michael Zerbs argue the time has come for firms to take a more centralised…
PPIP blip
Mortgage-backed securities purchases will begin in August under the US Treasury's Public-Private Investment Program. But analysts say holders of the paper may be unwilling to part with their toxic assets at any price. Peter Madigan reports
Unite or fail
The European Commission is busy preparing the detail of its proposals for a new framework of financial supervision - but will national supervisors see their powers and discretion curbed? Joel Clark reports
Back to repack
Despite the flak off-balance-sheet vehicles have received since the onset of the financial crisis, dealers report increased use of special-purpose vehicles by investors looking to repackage assets. Why are investors looking to these repackaging vehicles…
Reinforcing regulation
Carlos Montalvo Rebuelta, secretary-general, Ceiops, talks to Rob Davies
The CDS curse
There has been growing concern about the influence credit default swaps (CDSs) can have on corporate reorganisation talks. Some have argued that because lenders can also hold CDS protection, they might block a debt reorganisation in order to force the…
Flying blind
Despite some useful proposals, the Obama administration's regulatory reform initiative published in June ignores a crucial issue, argues David Rowe
Primus restructures $1.2 billion of CDSs on monolines
New York-based credit derivatives product company (CDPC) Primus Financial Products has restructured $1.2 billion of credit derivatives protection the firm had written referencing a monoline insurer.
Bank of England to buy up commercial paper
The Bank of England yesterday announced its intention to buy asset-backed commercial paper from struggling UK companies in a continuing effort to increase the flow of credit, starting on Monday August 3.
Financial CDS spreads steady
Market sentiment towards financials has steadied in the past week as the flow of positive second-quarter results from major financials in Europe and the US continued.
CDS clearing in Europe begins
Dealers have met the July 31 deadline for clearing credit default swaps (CDS) on European reference entities and indexes that they set back in February.
House committee chairmen produce roadmap to OTC reform
Collin Peterson and Barney Frank, the chairmen of the US House Committee on Agriculture and the House Financial Services Committee, respectively, have agreed a set of principles for imminent reforms to over-the-counter derivatives regulation.
Credit demand and supply still falling in Europe
European banks are still tightening their lending conditions, and demand for credit continues to fall, according to the latest lending survey by the European Central Bank.
European banks report modest Q2, despite increased provisioning
Top Spanish, German and Swiss banks have reported modest gains in the second quarter, although their profits have been constrained by an increase in non-performing loans and loan loss provisioning.