Collateralised debt obligations (CDOs)
RBC Capital to pay $30.4 million to settle charges
RBC Capital is charged with misconduct in the sale of CDOs by the SEC
SEC could sue Standard & Poor's over faulty CDO rating
The SEC may charge Standard & Poor's with breaking federal security laws in its rating of a 2007 CDO.
RBS faces $100 million lawsuit in US
RBS being sued in the US by Highland Capital for $100 million
US CLO issuance bouncing back in 2011, say experts
While CLO activity remains below pre-financial crisis levels, a demand for higher yields is driving US investor appetite
ETF providers hit back at 'hearsay' in the press and regulator concerns about synthetic ETFs
ETF providers have been angered by the continuing focus on synthetic ETFs by regulators such as the Bank of England and the IMF. But they are particularly concerned about the bad press coverage.
Recovery sparks spate of distressed asset sales
Making good on bad assets
Wells Fargo agrees $11 million SEC settlement over CDO sales
US SEC claims Wells Fargo Securities, formerly Wachovia Capital Markets, violated securities laws when selling CDOs tied to the ailing housing market
FSA denies CDO insider-trading crackdown
Regulator says investigations into certain market groups do not represent a CDO insider-trading initiative
CDO ratings arbitrage “reasonable and justifiable”, UK court finds
CDO ratings arbitrage ‘reasonable and justifiable’, finds UK court
The art of securitising CVA
Securitising CVA
Investec to issue collateralized notes
Investec is to become the third issuer of collateralised notes as it indicates a January launch.
House of the year: Deutsche Bank
Risk awards 2011
Foreclosures failings could lead to 'second round of crisis'
Former US Senate special counsel predicts trouble for institutions struggling to foreclose mortgages
Goldman's $550m payment is latest in a line of settlements
Goldman pays $550 million to settle charges of misleading customers on Abacus CDO
Moodys: Japan SME CDO ratings to show stable to positive trends
Moody's report says large increase in Japan SME defaults unlikely as economy recovers
Pricing distressed CDOs with base correlation and stochastic recovery rates
In 2008 and 2009, the calibration of the standard Gaussian copula model for collateralised debt obligations has frequently broken down. To overcome that problem, Martin Krekel has embedded the model with correlated stochastic recovery rates. He shows…
Beyond distributional analysis
In the third article in a four-part series, David Rowe considers the need for financial risk management to move beyond distributional analysis to consider more qualitative inputs
Spotlight on Goldman
The US Securities and Exchange Commission filed a lawsuit against Goldman Sachs in April, alleging it had misled clients by not disclosing that a major hedge fund had helped select the underlying assets in a collateralised debt obligation and was…
A bottom-up model with top-down dynamics
Yadong Li proposes a flexible, tractable and arbitrage-free bottom-up dynamic correlation modelling framework with a consistent stochastic recovery specification for multi-name credit derivatives. In this framework, the model’s spread dynamics can be…
Goldman lawsuit ratchets up pressure on banks to get their house in order
The US Securities and Exchange Commission’s lawsuit against Goldman Sachs for allegedly misleading clients has provoked widespread vilification of the bank. But is it reasonable to expect ethical conduct by investment banks to extend beyond legal…
Dealers prepping new CDOs
Despite growing risk aversion in the credit markets, behind the scenes dealers are working on new issues of collateralised debt obligations.
Goldman charged over CDO role
The US Securities and Exchange Commission filed a lawsuit against Goldman Sachs in April, alleging the firm misled clients. Some observers suggest the action may not be successful, but criticise Goldman’s behaviour. By Mark Pengelly and Duncan Wood