Risk magazine
Valuing hard-to-value assets
In this Class Notes article, Charles Smithson considers some of the lessons learned from the recent credit crisis. In particular, he reflects on the difficulties faced by many institutions in valuing illiquid structured finance instruments, and makes…
How secure are ratings?
Basel II
Breaking down
Correlation
Risk Australia Rankings 2008: A roller-coaster year
Market participants in Australia have faced a year of ups and downs in all asset classes. But a number of dealers - some facing problems of their own - have stood up to the task, with Deutsche Bank defending its position at the top of the pile
FSB raises concerns about South African hedge funds
In its efforts to licence the country's hedge fund managers, the South African Financial Services Board (FSB) has found problems with mandate compliance, levels of professional indemnity cover and the use of external business partners.
Slowing economy hits inflation markets
Poor economic prospects and falling commodity prices have changed the face of inflation markets around the world, easing the shortages that constricted them earlier this year.
Dow Jones Indexes expands into carbon
Index provider Dow Jones Indexes, in partnership with the Chicago Climate Exchange (CCX), has launched two carbon indexes, with a view to further expanding into other gases and regions.
SEC heads for IFRS acceptance by 2014
The US Securities and Exchange Commission (SEC) aims to bring international financial reporting standards (IFRS) into use in the US within the next six years.
Meagre $5bn profit for US commercial banks, says FDIC
Federally insured US banks posted total profits of just $5 billion for the second quarter of 2008, an 87% drop on the $31.8 billion earned over the same period in 2007 and the second-worst earnings results since 1991.
Fannie flushes out CRO and CFO, but Mudd sticks
Fannie Mae has made several leadership changes aimed at improving capital management and reducing credit losses.
FGIC in MBIA reinsurance deal
Financial Guaranty Insurance Company (FGIC), the New York-based monoline insurer, has signed a reinsurance deal with MBIA, the Armonk, New York-based monoline. The deal, which sees MBIA reinsure $184 billion of municipal bonds, was overseen by the New…
Short sales climb in wake of SEC injunction lapse
The latest market data shows the Securities and Exchange Commission’s recent emergency order to prohibit naked short selling has curbed overall short-selling activity, despite mixed messages from other market barometers.
Banks' latest ARS settlement falls short
Merrill Lynch has agreed a $7 billion settlement with its auction rate securities (ARS) customers, but the deal leaves the larger purchasers uncovered, as did a similar settlement at Goldman Sachs.
Canadian ABCP restructuring faces last hurdle
Efforts to restructure C$32 billion ($30.6 billion) of Canadian asset-backed commercial paper (ABCP) moved closer to a resolution on August 18, when the Ontario Court of Appeal unanimously dismissed the claims of a group of corporate investors that…
Lone Star to buy KfW’s stake in troubled IKB
A conclusion was reached last week for one of Germany’s recent banking crises as Texas-based private equity firm Lone Star agreed to purchase KfW Bankengruppe’s (KfW) stake in struggling IKB.
Fannie and Freddie equity plunge continues as bailout looms
Speculation is mounting in the US that the Treasury will shortly have to give direct support to Fannie Mae and Freddie Mac, as the government-sponsored enterprises’ (GSEs) equity prices plunged to 17-year lows today.
Foreign banks face $475 billion subprime losses
Although banks such as UBS have reported massive subprime-related writedowns in the early stages of the mortgage crisis, European banks are not over-represented in the subprime market, according to research published by the US Federal Reserve.
Ginnie Mae creates risk committee and appoints CRO
The US government-sponsored mortgage entity Ginnie Mae has established a risk committee and appointed Stephen Ledbetter as chief risk officer.
BGC names Aubin global head of listed products
Interdealer broker BGC has appointed Jean-Pierre Aubin as global head of listed products, based in New York.
Shareholders approve CME's Nymex takeover
Shareholders on both sides have approved CME Group's takeover of the New York-based exchange Nymex, which, combined with the Chicago Mercantile Exchange, would create a single market dominating the US futures industry.