Monetary policy
Market mulls forex options benchmark
Standard foreign exchange options benchmark prices could be the answer to inaccuracies in marking exposures to market, but whether the move is possible is a matter for debate, according to senior options market participants.
CDS: the quest for neutral pricing data
Credit default swap pricing data services are becoming one of the hottest growth markets for both brokers and modelling software companies. Gallagher Polyn explores what’s on offer
Insurance sector: moral hazard
Several insurance companies are now contemplating rights issues to bolster their capital positions. Analysts give their opinions on whether the rights issues are good news for bond investors, and what the credit outlooks are for firms in the European…
Ford: spanner in the works?
Ford is losing market share; eight months into its restructuring plan it is six months behind schedule, union problems are threatening to halt supply and it has few new models in the pipeline. Is Ford all bad news from a credit perspective?
Euro derivatives in the Nordic markets
Nordea Markets examines the recent flow of Nordic activity into the euro derivatives market as balance sheet hedging accelerates
Buying and selling risk
Rampant volatility in 2002 has been a minefield for investors. But risk budgeting and proprietary tools are helping many navigate treacherous markets.
European telcos: mixed signals
Issues of disclosure, liquidity, high debt levels and low equity valuations have combined to make the telecoms sector as volatile in the first half of this year as it was last year. But will this continue throughout the second half of this year and more…
The roads to currency overlay
Currency overlay is catching on, but potential clients are confused by the different management techniques on offer. Paul Lyon talks to two currency overlay managers employing different styles, about the development of their industry
A cost/benefit approach to Basel II
The cost of implementing Basel II could put banks at a competitive disadvantage compared with non-banks, and spur them to ‘de-bank’ to avoid this regulatory burden. Harry Stordel and Andrew Cross say regulators must look at the provisions from a cost…
mmO 2
mmO2's bonds have performed poorly and the issue now is how vulnerable the spreads are to further underperformance. The extent to which wireless sector revenues pick up or continue to languish is clearly the determiner. Vodafone has focused attention on…
A cost/benefit approach to Basel II
The cost of implementing Basel II could put banks at a competitive disadvantage compared with non-banks, and spur them to ‘de-bank’ to avoid this regulatory burden. Harry Stordel and Andrew Cross say regulators must look at the provisions from a cost…
Looking for value
Taiwan’s convertible bond market has rocketed this year, and with it, the asset swap market has thrived as hedge funds look to strip out the under-priced equity option. Nick Sawyer reports
ABB: a mixed outlook
ABB’s liquidity crisis proved to be “avoidable but resolvable”, and there is now optimism in the market over the company’s debt reduction prospects. Asbestos liabilities are still the unknown quantity. ABN Amro
New solutions
The structured credit market has had to respond to sharply deteriorating credit quality with structural enhancements and new innovation. Despite record numbers of downgrades, demand for structured credit remains robust. Mark Pelham reports.
Solving the pensions puzzle
A host of market and structural problems are plaguing US corporate pension plans. Derivatives dealers are pitching a number of potential solutions.
2002 the year ahead
2001 was a turbulent year for the credit markets, with fallen angels and debt-laden telcos abounding. At the start of 2002, and in the wake of events such as September 11, the direction of the different sectors and of the market may take some months to…
Pro-cyclicality in the new Basel Accord
Could Basel II worsen recessions? By backtesting the proposed capital rules to the last recession, D. Wilson Ervin and Tom Wilde argue that the increased risk sensitivity of loan portfolio regulatory capital in the new Accord could have unwelcome…