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DrKW replaces hybrid capital head

Dresdner Kleinwort Wasserstein (DrKW) has hired Ronan Donohue as head of hybrid capital to replace Mark Woolley, who quit to join Deutsche Bank in September.

Broadening horizons

When the investment horizon is of the order of a few years, such as in the context of personalfinancial planning, it becomes necessary to calculate and stress-test the exact distribution ofthe market at the given horizon, as the common first-order…

Excess yields in bond hedging

Litterman & Scheinkman (1991) showed that the term structure of interest rates is reliablymodelled by an affine three-factor model using principal component analysis. Such a modelis inconsistent with no arbitrage. Here, Haim Reisman and Gady Zohar derive…

China Aviation Oil suffers $550 million derivatives loss

Singapore-based China Aviation Oil, the supplier of nearly all of China’s jet fuel imports, has racked up $550 million in losses through speculative oil derivatives trades. This has forced the company to seek court protection from creditors while it…

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