News/Regulation
Merrill touts restructuring strategy
US investment bank Merrill Lynch is advising investors to 'buy restructuring' as part of their credit portfolio strategy, according to a new report, 'Credit Derivatives Protection Strategies'.
Making the grade
As credit risk is now a major concern in the energy industry, EPRM takes a look at CreditGrades, a risk measurement tool from risk analytics firm RiskMetrics
Morgan Stanley says restructuring will not be required for capital relief
A subcommittee will recommend to the Basel Committee on Banking Supervision that capital relief from credit derivative hedging should not require the inclusion of restructuring as a credit event, Morgan Stanley analysts said in a report yesterday.
Top dealers plot ‘Project Red’ revival
The backers of ‘Project Red’, a credit derivatives reference entity database (Red) set up by top dealers Deutsche Bank, Goldman Sachs and JP Morgan to remove basis risk in credit trading, have conditionally agreed to sell the service to UK credit risk…
BIS puts spotlight on credit risk transfer
In a report published today, the Bank for International Settlements (BIS) highlighted disclosure, concentration and the role of ratings agencies as key features of the credit risk transfer market that may need to be addressed with regulation.
BIS puts spotlight on credit risk transfer
In a report published today, the Bank for International Settlements (BIS) highlighted disclosure, concentration and the role of ratings agencies as key features of the credit risk transfer market that may need to be addressed with regulation.
BIS issues "problem bank structure" rules
The Bank for International Settlements (BIS) issued two papers near the end of January aimed at curbing money laundering and fraud by clamping down on problematic banking structures.
G30 proposes major clearance reforms and emphasises risk issues
The Group of Thirty (G30), an association of private and central bankers, today issued an ambitious blueprint for a reform of the global securities clearing and settlement system. The initiative comprises 20 recommendations, designed to reduce investor…
Morgan Stanley and Axa sued over CBO management
Jersey-registered collateralised bond obligation (CBO) investor Beaford is suing US investment bank Morgan Stanley and French insurer Axa, along with a number of its subsidiaries, for failing to properly manage three CBOs between 1996 and 2002. Morgan…
Japanese synthetic CDO market to see continued growth
Japan’s synthetic collateralised debt obligation (CDO) market is likely to continue to boom in 2003, according to a report published this week by credit rating agency Moody’s Investors Service.
BofA becomes first Moody’s KMV CreditMark client
Bank of America (BofA) has signed up to a new product offered by credit risk management company Moody’s KMV, called CreditMark, which allows financial institutions to mark-to-market their corporate loans.
Synthetic CDOs lead growth in European securitisation, says Moody’s
Collateralised debt obligations (CDOs) saw the greatest volume of growth in the European structured finance market in 2002, said ratings agency Moody’s in a report today. Last year, issuance rose to €182 billion, an increase of 42% on the total in 2001,…
Asia's ABS market breaks records in 2002
The Asian securitisation market had its most successful year ever in 2002, with cross-border issuance reaching a record $5.56 billion, according to a report by ratings agency Moody’s Investors Service.
McDonough bows out from New York Fed
William McDonough, president and chief executive of the Federal Reserve Bank of New York for the past 10 years, will retire on July 21 this year.
Rogue trader Rusnak receives prison sentence
John Rusnak, the former Allied Irish Banks (AIB) trader responsible for $691 million in fraudulent losses related to yen-dollar currency forwards, has been sentenced to seven and a half years in prison.
FDIC plans series of Basel papers
The US-based Federal Deposit Insurance Corporation (FDIC) has announced plans to issue a series of papers over the coming months that will analyse the impact that the revisions to the Basel II Accord will have on the US banking system.
Pension scheme re-alignment has no impact on financial risk, says actuary chief
The discontinuation of final salary pension schemes for employees will not, as many companies assert, reduce financial risk, according to Ronald Bowie, chairman of the pensions board of the UK Faculty and Institute of Actuaries.
New supervisory rules trigger alarm in Japanese banking system
The impact of a rigorous new Japanese bank inspection system is causing alarm at the country's banks, with many scrambling to shore-up fragile financial reserves ahead of its implementation in the next couple of months.
IASB oprisk project shifted to new working group
The International Accounting Standards Board (IASB), the global accounting rules organisation based in London, released information on proposed changes to its risk disclosure standards in International Accounting Standard 32 (IAS 32) in December, after…
New supervisory rules trigger alarm in Japanese banking system
The impact of a rigorous new Japanese bank inspection system is causing alarm at the country's banks, with many scrambling to shore-up fragile financial reserves ahead of its implementation in the next couple of months.
Westpac launches CDO of CDOs
Australian bank Westpac has closed a $1.25 billion synthetic collateralised debt obligation (CDO) backed by a pool of structured finance transactions. The deal, arranged by JP Morgan Chase, is thought to be the first such structure issued in Asia-Pacific.
Reflated economy must be Japan’s priority, claims Moody’s
The outlook for Japanese sovereign debt would improve if the Bank of Japan (BoJ) took measures to reflate the economy, according to rating agency Moody's Investors Service. As the BoJ decides on a new governor to replace outgoing Masaru Hayami in March,…
Cross-sector risk transfer regulations should be reviewed, say FSA respondents
The UK's Financial Services Authority (FSA) recently released feedback on responses to Discussion Paper 11, which focused on the effects of risk transfer between the banking industry and the insurance industry via credit derivatives and related products,…