Risk magazine
AFP warns against hasty derivatives regulation
Bill Miller, chairman of the Association of Financial Professionals’ (AFP) End-Users of Derivatives Council (EUDC), is calling for restraint when considering amending US derivatives regulation following the collapse of Enron.
Swiss Re executes $40 million catastrophe risk CDO
Swiss Re Capital Markets Corporation (SRCMC) has executed what is believed to be the first ever synthetic CDO based on natural catastrophe risks. The underlying risk exposures were accessed through industry loss warranties (ILWs), for which Judith…
San Paolo plans to launch first Italian single-manager hedge fund
Obiettivo SGR, a subsidiary of Italian banking organisation San Paolo IMI, plans to become the first single-manager hedge fund launched in Italy.
Credit Markets Update: Spreads widen on US telecoms woes
The cost of credit derivatives protection rose on a number of telecoms today following the resignation yesterday of WorldCom chief executive Bernard Ebbers and a wider than expected $698 million loss in the first quarter reported by Qwest.
Nordea snares Andreasen and Bangert to boost exotics
Nordea Markets, the investment banking arm of pan-Nordic bank Nordea, has made two key hires as part of its bid to boost complex derivatives activities.
The future for Basel II
With Basel II delayed yet again, will revisions to the capital Accord happen at all? David Rowe says Basel I is the best argument for persevering, but any revisions must address regulatory arbitrage problems and take greater account of the full range of…
The opportunist
In Barclays Capital, Bob Diamond has created a business that can compete with the global bulge bracket
Static data moves forward
Firms tackling high-speed and information-intensive tasks such as straight-through processing or risk management without accurate instrument and counterparty reference data may be taking enormous operational and credit risks. Clive Davidson reports on…
Job moves
QUOTE OF THE MONTH: - “The perception of government support may induce the counterparties of government-sponsored enterprises to apply less vigorously some of the risk controls that they apply to manage their over-the-counter derivatives exposures”…
Trading commodities and correlation
Dealers are devising commodity derivatives products to attract new investors desperate for an alternative to the poorly performing financial markets
Dealers debate regime change in US interest rate volatility
Has the US interest rate options market entered a new period of sustained higher implied volatility? Deutsche Bank says yes, but other leading dollar interest rate derivatives dealers say it is too early to tell. Mortgage investors and options writers…
Mixed outlook for derivatives staff
After a disappointing 2001, the job market for derivatives specialists looks set to rebound this year in certain areas, while other areas remain stagnant or face even further declines. Gallagher Polyn identifies the hot spots and those areas to avoid in…
Retail product design innovations
Retail investors the world over are looking for alternatives to the faltering stock and fixed-income markets. Derivatives dealers looking to tap this demand are rolling out new products and revising old ones for the retail audience. John Ferry and Navroz…
Fewer options in 2001 | A Risk survey
The foreign exchange options market cooled off significantly last year, as September 11 and lower forex volatility kept dealers away. Risk’s third annual survey of 13 large forex options houses reveals that their combined 2001 volumes fell by $1.1…
