News/Risk management
Credit Markets Update: France Telecom fluctuates in thin markets
The cost of credit protection on troubled telco France Telecom fluctuated this week within a 100 basis point range, causing knock-on effects on the spreads of other European telecoms in jittery markets that saw little trading activity. But positive…
Eurostat ruling likely to slow government securitisations
New rules issued on government securitisations late yesterday by Eurostat, the statistical body of the European Commission, could slow the sovereign securitisation market, according to industry participants. The rules, which cement the accounting…
ING Financial Markets to use Credient for credit portfolio management
The Netherlands-based ING Group has selected SunGard Trading and Risk Systems' Credient application to support its credit portfolio management business.
Basel II credit risk charge to be lower with modifications, says survey
Banks using a more complex risk measurement approach under the Basel II bank Accord, once potential modifications are put in place, would have lower credit risk capital charges than under the current Basel I Accord. This is the view of global banking…
Basel II focus switches to securitisation after SME loan solution agreed
Experts working on the Basel II bank capital rules are focusing on the technically difficult issue of asset securitisation after agreeing a solution this month to the politically sensitive problem of how lending to small and medium-sized enterprises …
Risk contributor Blejer steps down as Argentine central bank governor
Mario Blejer, a former senior adviser to the International Monetary fund (IMF), has resigned as governor of the Argentine central bank. The move could prove to be a blow to Argentine president Eduardo Duhalde's efforts to restore the country's battered…
UK’s FSA plans delayed Basel II paper for mid-July
The UK’s chief financial regulator plans to issue its discussion paper on implementing the Basel II bank capital adequacy Accord and parallel European Union (EU) rules in mid-July.
Westpac in energy derivatives push
Australian bank Westpac is expanding its energy derivatives product range, with an array of new instruments expected to be approved by the end of the third quarter, according to Paul Quilkey, global head of Westpac Energy in Sydney.
France Telecom debt protection cost soars following downgrade
The cost of five-year credit protection on France Telecom debt widened by 100 basis points (bp) today as rating agency Moody’s cut its credit rating to one notch above 'junk'. Five-year credit default swaps were priced at 600/650bp in heavy trading.
Hong Kong Exchange to allow more derivatives listings
The Stock Exchange of Hong Kong, a unit of Hong Kong Exchanges and Clearing Limited (HKEx), said it is changing its main board listing rules from July 1 to allow more derivatives products, such as equity-linked instruments (ELIs), to be listed on the…
Increased regulation for OTC commodities is unnecessary, claims Isda
Increased regulation for the over-the-counter (OTC) commodity derivatives market designed to protect investors is unnecessary, according to the International Swaps and Derivatives Association (Isda). The European Commission is proposing regulation of…
Credit Markets Update: bleak market sentiment and TMT woes drive spreads
European credit default swap spreads have continued to follow the equity market’s lead this week, tightening on Monday but widening again today. The volatile technology, media and telecoms sector set the tone for the wider market.
Op risk is much more than a capital allocation exercise, says Moody's
Moody's Investors Service said banks should treat operational risk management as much more than just another regulatory capital allocation exercise. In a special report, the international rating agency said capital is "an incomplete line of defence"…
Fitch hits back at Moody's in CDO ratings row
Rating agency Fitch moved to defend its standing in the collateralised debt obligation (CDO) rating market by slating the ‘notching’ practices used by rival rating agency Moody’s in a formal report yesterday.
NAB offers soft commodity hedging in Australia
National Australia Bank (NAB) has launched a range of soft commodity hedging products to cater for the country's large agricultural sector.