Articles by Duncan Wood
Bargain basement in the Baltic states
Scandinavian banks are set to become huge owners of Baltic real estate. A large proportion of home loans in the region come from Nordic lenders and repossessions are rising. Some banks are already making preparations to take over and service large…
Scaling the peaks on 3s/6s basis
Some banks are drawing attention to a widening in the basis between three-month and six-month Euribor, as financial institutions are forced to use longer-term funding to eliminate mismatches on their balance sheets. How are banks responding? By Duncan…
Loan loss dynamics
The International Accounting Standards Board unveiled a new expected loss approach in November, following criticisms of the current incurred loss model. But European regulators have declared their preference for dynamic provisioning – and have even…
Less risk, less profit
Regulators are gearing up for a crucial meeting of the Basel Committee this month, which will finalise proposals on capital buffers, quality of capital and a leverage ratio. Sylvie Matherat, head of financial stability at the Banque de France, talks to…
Crowd busting
The financial crisis revealed most dealers had near-identical exposures in exotic derivatives markets – whether in credit, interest rates, equity or inflation – leaving them unable to exit or hedge their positions when markets tanked. How have traders…
Profits of doom
An analyst at JP Morgan has predicted recent changes to derivatives regulations could drastically cut return on equity at investment banks. Will banks look to exit certain business lines with less attractive risk-adjusted returns as a result? Duncan Wood…
The weight of blame
The public's perception of banks has hit rock bottom, and politicians have pounced on the opportunity provided by the crisis to increase their own popularity. So banks face not only loss of business but also increased regulation.
Credit pricing principles
In the wake of the financial crisis, some dealers acknowledged they were lax in pricing credit into derivatives trades, and pledged to be more attentive in future. With confidence now returning to the market, will competitive pressures overrule these…
He who laughs last
Professor Leon Metzger is a seasoned campaigner on the importance of internal controls within asset management firms, and has faced ridicule over the years from those who valued returns over operational controls. Then along came Madoff. No-one's laughing…