Risk magazine
Auctions held on credit derivatives referencing three US companies
Three credit event auctions run by data vendor Markit and broker Creditex have determined final settlement values for credit derivatives trades referencing Missouri-based cable operator Charter Communications, Pennsylvania-based financial services firm…
Fed divulges process behind bank stress tests
The US Federal Reserve has released details of the methodology behind its Supervisory Capital Assessment Programme (SCAP), the recently concluded stress tests conducted by regulators to ascertain whether additional capital replenishment is needed at the…
CDSs on US banks tighten
The cost of credit protection on US banks fell yesterday, in the week US Treasury secretary Timothy Geithner asserted "the vast majority" of the nation's banks are well-capitalised.
OpRisk Europe: Dump Basel II, MP says
Basel II should be abandoned in favour of tougher regulations, UK member of parliament John Redwood told operational risk managers in London yesterday.
Freddie Mac's ex-CEO rejoins within a month of resigning
The ex-chief executive of US government-supported mortgage buyer Freddie Mac, David Moffett, has rejoined the firm only a month after he resigned.
Government ownership of banks possible, asserts Tarp board
According to a report released today by the Financial Stability Oversight Board, the government has the potential to take a major ownership stake in banks via the Capital Assistance Program (Cap), which was designed to provide capital to ailing banks…
IMF: leverage best for determining bank bailouts
Leverage ratios, return on assets and stock data are among the most reliable indicators for predicting whether banks would require government intervention in the credit crisis, according to a study published by the International Monetary Fund (IMF) this…
Credit Suisse reshuffles CRO positions
As Credit Suisse announced its first quarter results on April 23, which included reporting profits of Sfr2 billion ($1.72 billion) for the period, it also revealed changes to its risk management team.
Proposed replacement for IAS 39 to be released in October
The International Accounting Standards Board (IASB) will release proposals to replace IAS 39 - the accounting standard for financial instruments - in October this year.
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 spreads tighten on financials
The cost of credit protection on European and US banks fell in early trading today after Credit Suisse became the latest major bank to post positive first-quarter earnings.
OpRisk Europe: FSA condemns operational risk weaknesses
Financial institutions have failed to properly manage their operational risk in recent years and can expect to be subjected to higher requirements in future, an official from the UK Financial Services Authority (FSA) warned yesterday.
Isda AGM: 94% of world's largest corporates use derivatives
Ninety-four per cent the world's largest corporates use derivatives to hedge their business and financial risks, according to a survey of the Fortune Global 500 companies by the International Swaps and Derivatives Association (Isda), released at its 24th…
UK guarantees AAA RMBS in bid to jump-start lending
The UK government has launched a scheme to guarantee up to £50 billion in residential mortgage-backed securities (RMBS) for the first time, finance minister Alistair Darling said yesterday.
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…
EU presses ahead with tougher regulation of rating agencies
The European Parliament today voted in favour of a new regulation that will force credit rating agencies (CRAs) to comply with minimum standards of good practice and transparency.
Trading and technical gains outweigh loan losses in Q1
Strong trading results have offset large loan losses as banks report a mixed bag of first-quarter results.
Isda AGM: Collateral use continues to rise
Over-the-counter derivatives traders have increased their use of collateral by 86% in the past year, according to a survey of banks and institutional investors released today by the International Swaps and Derivatives Association.
Isda AGM: Election of 11 board members
The International Swaps and Derivatives Association has elected 11 directors, seven of whom currently serve on the board.
Isda AGM: Derivatives post-trade processing improves
The International Swaps and Derivatives Association (Isda) says post-trade processing has continued to improve over the past year, with lower numbers of confirmations outstanding and higher levels of automation.
Goldman advocates carry trade; analysts disagree
Background conditions might be improving for the carry trade, but investors are still too wary to return.
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 spreads stabilise on financials
Market sentiment remained steady this morning towards US and European banks.
PPIP participants possibly exempt from compensation limits
Asset managers that participate in the Public Private Investment Program (PPIP) with the US Treasury will probably be exempt from executive compensation limits imposed on private entities that have accepted government bail-out funds, Treasury secretary…