Risk magazine
In the thick of it
Eddy Wymeersch, chairman of CESR, talks to Alexander Campbell
Hammer time
The approval by the US Congress of a $700 billion rescue package in October has paved the way for the US Treasury to purchase illiquid assets from banks' balance sheets. The question is: how will these assets be valued? In this month's Class Notes…
Pushed to the limit
Stress Testing
Shorts changed
Short selling
The domino effect
Corporates
DTCC closes out over $500 billion of Lehman exposure
The Depository Trust & Clearing Corporation (DTCC), which provides post-trade clearing and settlement services in the US capital markets, has completed the largest close out in its history, clearing over $500 billion of market participants’ exposure to…
Ted and dollar Libor fall again
Recovering US and European stock markets increased confidence in interbank lending today.
CDS spreads stay firm
The cost of credit protection on European and US banks remained stable this morning, as the world’s equity markets steadied after a volatile week.
Ice picks off ClearCorp
Atlanta-based Intercontinental Exchange (Ice) is to take over Chicago-based clearing house The Clearing Corporation (ClearCorp) as part of an effort to establish itself in the credit default swap (CDS) market.
German regulator investigates Volkswagen shares manipulation
The German financial regulator, BaFin, has started a formal investigation into market manipulation of Volkswagen's shares after they quadrupled in value and then fell by almost half over a three day period. BaFin said the probe could lead to…
IMF and Fed plan bailouts for emerging markets
The International Monetary Fund has agreed to step up its short-term lending programme to emerging market nations in order to ward off the spreading debt crisis.
Credit dries up in shipping industry
Letters of credit, a form of guarantee that are fundamental to world trade, have become increasingly hard to secure, as lack of confidence in financial institutions spills over into the shipping industry.
CDS spreads tighten further
The cost of credit protection on European and US banks narrowed this morning, as market sentiment improved on the announcement the Federal Reserve will cut the federal funds rate to 1%, its lowest level since 2004.
Risk USA: Buy-side expresses counterparty unease
Concerns about counterparty risk and its effect on the business of investment firms were raised repeatedly from buy-side market participants at Risk USA , which concluded on Wednesday in New York.
Dollar Libor leads the way down after Fed rate cut
Libor rates fell across the board today, as stock markets in Europe and Asia continued to pick up and the US Federal Reserve announced a 50 basis point rate cut.
Risk USA: Call to link risk manager compensation to performance
The compensation structure for risk managers should be revamped as part of wider changes to risk management processes in light of the credit crunch, delegates at Risk USA in New York were told yesterday.
Risk USA: IMF unveils dire global economic outlook for 2009
The global economy will experience growth of just 3% next year, as the effects of the financial crisis spill over into the wider economy, the International Monetary Fund (IMF) has said.
Government stakes in banks raise counterparty conundrum
The collapse of Lehman Brothers in September has put greater focus on the issue of counterparty credit risk. But dealers admit to being stumped as to how the taking of equity stakes in major banks by governments across the globe will play out.
Risk USA: Government inconsistency on rescues deepens crisis
The US Government's ad hoc response to bank failures has increased instability in the US banking system and deepened the credit crisis, a senior risk officer told delegates at Risk USA.
Bank CDS spreads tighten
The cost of credit protection on European banks narrowed this morning, as market sentiment rebounded after last week’s equity market plunge.
Three-month Libor rates fall as stock markets climb
Interbank lending continued to ease today as European and Asian equity markets showed further signs of recovery.
Daiwa expands its derivatives division
Daiwa Securities SMBC, the Japanese investment bank, has made several additions to its global derivatives team.
MF Global head steps down after Lehman losses
Kevin Davis, chief executive of US broker MF Global, has resigned as the company prepares to report unexpectedly high losses from the collapse of Lehman Brothers last month.