Risk magazine
Progress made on equity derivatives backlogs
Investment banks have continued to make progress with reducing confirmation backlogs associated with executing over-the-counter equity derivatives trades. The average backlog has been reduced to nine days, down from 19 days in November 2006, according to…
Bank practices undermined liquidity, BIS says
In the approach to the credit crisis, practices such as securitisation, dependence on the money markets and use of collateral increased the danger of a liquidity shortfall, according to a report released by the Bank of International Settlements (BIS).
CPDOs suffer more downgrades
Rating agency Standard & Poor's (S&P) has downgraded 28 of the 29 constant proportion debt obligation (CPDO) transactions it rates.
SAP poaches Misys Asia-Pacific head
Murray Sargant left his post as Asia-Pacific managing director in treasury and capital markets at software vendor Misys in mid-December to join business software supplier SAP.
MBIA looks to past head as monolines flounder
MBIA, the Armonk, New York-based monoline insurer, has appointed Jay Brown as chairman and chief executive officer, nine months after he retired from his last position at the company.
CFTC establishes new energy markets advisory committee
The US Commodity Futures Trading Commission (CFTC) has established an advisory committee to provide a public forum examining issues related to the energy markets and the CFTC’s role in them under the Commodity Exchange Act.
Kerviel acted alone, SG report finds
The Société Générale (SG) investigation into rogue trader Jerome Kerviel has found no evidence of an accomplice, but criticises the bank's oversight teams for failing to take the initiative in following up 93 alerts triggered by his unauthorised trades.
Bear Stearns names Loic Meinnel as new European head of foreign exchange
Loic Meinnel has joined Bear Stearns as head of foreign exchange for Europe. He will also be the firm’s global head of foreign exchange options and the European co-head of emerging markets.
State Street adds six in fixed income
Institutional fund manager State Street Global Advisors has appointed six senior executives to its global fixed-income team. All six will report to Mark Marinella, State Street’s new global fixed-income chief, and will be based in Boston.
UK banks show resilience
London-based Barclays has reported improved earnings for 2007, despite a $3.2 billion (£1.6 billion) net loss due to exposures to US subprime loans.
Amine appointed co-head of Credit Suisse's global investment banking department
Credit Suisse has named Jim Amine as co-head of its global investment banking department and head of its global markets solutions group.
PBGC throws in towel on liability-driven investment
The US Pension Benefit Guaranty Corporation (PBGC) has called time on its commitment to liability-driven investments (LDI) after admitting its current strategy has a less than one-in-five chance of meeting future funding needs.
Morgan Stanley names Owen Thomas CEO for Asia
Owen Thomas has been appointed chief executive of Morgan Stanley, Asia. Thomas has served as president of Morgan Stanley Investment Management (MSIM) since December 2005.
BNP Paribas appoints new strategy head for Americas equity derivatives
BNP Paribas has appointed Christian Roch as head of strategy and corporate development for equities and derivatives in the Americas, a newly created position at the French bank.
Mispricings at Credit Suisse cause $2.85 billion loss
Zurich-based Credit Suisse has suffered an additional $2.85 billion in writedowns due to ‘mismarkings and pricing errors’ in structured credit products exposed to US subprime mortgages.
Monoline costs ANZ $200 million
Melbourne-based Australia & New Zealand Banking Group (ANZ Bank) has announced a US$200 million loss provision due to counterparty risk exposures to troubled US monoline insurer ACA Capital.
Cautious optimism over Northern Rock nationalisation
Rating agency Standard & Poor's has upgraded the troubled UK bank Northern Rock from A- to A after the UK government announced its nationalisation.
Natixis losses top €1 billion
Paris-based investment bank Natixis has announced a €1.1 billion writedown, as a result of the global credit crisis due to US subprime mortgages.
Deutsche loses US ABS and CDO research head
Deutsche Bank’s New York-based head of US asset-backed securities (ABS) and collateralised debt obligation (CDO) research, Anthony Thompson, is no longer with the bank.
CDOs of ABSs "in deep trouble"
Ninety-eight collateralised debt obligations of asset-backed securities (CDOs of ABSs) rated by New York-based Standard and Poor’s (S&P) have reached so-called events of default (EODs).
US regulators reveal plan to split monolines
Monoline insurers could be split into two separate entities under plans being considered to stave off further credit rating downgrades of the troubled municipal bond guarantors.
Credit Suisse contains credit crisis impact
Zurich-based Credit Suisse has unveiled a lower than expected Sfr1.3 billion writedown on leveraged finance, and structured debt and mortgage investments in the fourth quarter of 2007.
Monolines show no appetite for Buffett
Warren Buffett’s plan to reinsure wrapped municipal bonds has been given short shrift by monoline bond insurers.
AIG admits errors in credit loss estimates
American International Group's (AIG) writedowns on its US subprime exposure were more than triple the original estimate, it emerged yesterday.