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DrKW shuffles Asian credit business

Dresdner Kleinwort Wasserstein (DrKW) has transferred Mike Gordon and Carlos Cala from Tokyo to Singapore in an effort to balance its credit business resources between the two cities, according to an official at the bank in Tokyo.

NYCC to offer CLS services

Two firms have signed up for the new continuous-linked settlement (CLS) service of the New York Clearing Corp (NYCC), the clearing house for the exchange markets of the New York Board of Trade (Nybot), reports RiskNews ' sister publication Trading…

BNP Paribas creates credit arbitrage team

BNP Paribas is setting up a global credit arbitrage team, with Stéphane Delacote, previously Tokyo-based head of credit trading and derivatives for Asia-Pacific at the French bank, moving to London to head up the new division.

Unifying volatility models

This article introduces a method for building analytically tractable option pricing models that combine state-dependent volatility, stochastic volatility and jumps. The eigenfunction expansion method is used to add jumps and stochastic volatility to…

Multi-factor adjustment

The author presents an analytical method for calculating portfolio value-at-risk and expected shortfall in the multi-factor Merton framework. This method is essentially an extension of the granularity adjustment technique to a new dimension.

Swap vega in BGM: pitfalls and alternatives

Raoul Pietersz and Antoon PelsserPractitioners who are developing the Libor BGM model for risk management of a swap-based interest rate derivative be warned: for certain volatility functions the estimate of swap vega may be poor. This may occur for time…

FX smashes $600m hole in Anglo accounts

The cost of failing to hedge foreign exchange risk was brought into sharp focus last week, when mining firm Anglo American said its 2003 earnings were down $578 million as a result of currency movements, reports RiskNews ' sister publication FX Week .

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