Credit Suisse
Trac-x gains market maker support
BNP Paribas has signed up to make markets in the Trac-x Europe credit default swaps index initiative established by JP Morgan Chase and Morgan Stanley. Other major dealers are also looking into offering market making services in Trac-x products, with…
Tech glitch strikes CLS
The failed settlement of more than 20,000 Australian dollar and yen trades on the continuous-linked settlement (CLS) service last week was caused by multiple technical faults, senior CLS officials said.
Fitch Risk launches Credit Rating System
CreditVantage, the credit risk management division of Fitch Risk, has launched Credit Rating System (CRS), a suite of credit rating products designed to assist banks in implementing industry best practices in their credit analysis and capital allocation…
Meeting Basel II head on
Regulators are urging banks to update their rating methodologies in preparation for Basel II. Fitch Risk's Treeve Coomber thinks his new product will help to meet this challenge.
"Substantial flaws still remain" in Basel II, says CSFB's Ervin
"While there is much to admire in the new [Basel II] rules, there are also many elements that raise serious concern," said Wilson Ervin, a managing director and head of the firm's strategic risk management department of Credit Suisse First Boston, who…
Substantial flaws remain in Basel II, says CSFB's Ervin
Wilson Ervin, head of the strategic risk management department at Credit Suisse First Boston, yesterday said that there are causes for concern in the Basel II proposals. "While there is much to admire in the new [Basel II] rules, there are also many…
CLS settles a trillion a day
NEW YORK — Continuous Linked Settlement, the new settlement service for foreign exchange, settled a record $1 trillion in FX payments on February 18.
Waiting for guidance
South Korea's banks have made huge strides in implementing risk management systems over the past few years, but Basel II is not yet a driving force, with banks waiting for the Korean regulator to publish local guidelines.
Nomura victory sets precedent for credit derivatives delivery
A landmark ruling, favouring Nomura over Credit Suisse First Boston (CSFB), in London yesterday will set a clear precedent for the credit derivatives market, the Japanese investment bank said. Nomura challenged CSFB on the deliverability of convertible…
Julius Baer NY hires in FX forwards
Swiss bank Julius Baer has hired Remo Caderas to trade foreign exchange forwards and fixed-income products in New York as part of an ongoing effort to ramp up its forex business.
Citi merges forex and rates businesses
Citigroup has merged foreign exchange with derivatives and interest rate products to form its new global rates and currencies group.
Pan-European structured financing trend expected in 2003
A pan-European, multi-jurisdictional approach to securitisations is set to become a key growth area in 2003, according to Fernando Bautista, a partner with international law firm Freshfields Bruckhaus Deringer. Bautista believes the traditional approach…
Traders see interest in short-dated protection for insurers
Credit derivatives traders said interest in short-dated protection on European insurers was active this week. But the cost of protection in the normally more liquid five-year credit default swap markets for European financial institutions remained…
FSA slaps CSFBi with £4 million fine
The UK’s Financial Services Authority (FSA) yesterday fined Credit Suisse First Boston International (CSFBi), the derivatives arm of Credit Suisse First Boston, £4 million for attempting to mislead the Japanese regulatory and tax authorities - the…
AIG makes senior FX appointments
AIG Trading Group has made four senior additions to its global foreign exchange operation over the past two months, a spokesperson in the bank’s Greenwich, Connecticut headquarters said.
Swiss banks low risk but face market saturation, says Moody's
The two-tiered Swiss banking system, split between global giants Credit Suisse Group (CGS) and UBS at one level and smaller regional and private banks at another, continues to exhibit comparatively low risk levels, said Moody’s in a report on Swiss banks…
Credit protection for troubled European financials remains stable
The cost of protection for European financials has remained relatively unchanged this week, despite a spate of downgrades and negative ratings actions. Abbey National released poor results today, but credit default swaps on the British bank held firm…
Sponsor's article > Redefining risk methodology horizons
Research has suggested that banks may need to address issues not clarified by Basel II and take a long, hard look at whether accepted approaches to evaluating credit risk are adequate. As part of its strategic forum series, SunGard's Panorama business…
HSBC’s purchase of Household triggered credit rally, according to BoA
Bank of America (BoA) has used its new credit risk model to show, quantitatively, how HSBC’s proposed purchase of Household International, announced last Thursday, sparked a credit rally.
C&W protection costs widen 200bp following restructuring talk
The cost of credit protection on debt of UK telecommunications company Cable and Wireless (C&W) has widened by more than 200 basis points since its revealed late Wednesday that it would cut 3,500 jobs, undergo a major restructuring and reassess its off…
Basel II will lead to more instability, critic argues
LONDON - The Basel II bank capital accord will result in more banking instability and more pro-cyclicality, where bank actions taken in response to solvency rules reinforce economic and market cycles, a leading critic of the accord said in October.
Unsystematic credit risk
Although Basel has shifted its treatment of unsystematic credit risk from the first, capital rules pillar (where it was called the ‘granularity adjustment’) to the second, supervisory pillar of the forthcoming Accord, this issue is of great practical…
Sponsor's article > Basel II and pro-cyclicality
The main argument for making regulatory capital requirements more risk-sensitive is to improve allocational efficiency. But this may lead to intensified business cycles if regulators fail to take measures to prevent such an impact.