Credit - 2008-05-01

Mexico dances to a different tune

With US structured finance markets in the grip of the subprime squeeze, close neighbour Mexico might be expected to have suffered a similar fate. But strong investor demand for securitisation and homeowner-friendly government initiatives are combining to…

Legal Spotlight

ABS investors may shudder at the mention of the word 'subprime', but that shouldn't deter issuers from using securitisation to raise capital. In our special extended feature, Neal Handa and Bruce Bloomingdale look at how the credit crisis has affected…

Traders get a taste for pick and mix

Relying exclusively on third-party applications for trading, pricing and risk management of mortgage-backed and other asset-backed securities does not make sense for all buy-side firms. Alternative investment manager Highland Financial Holdings Group has…

An absorbing business for credit hedge funds

Analysts predict there will be a wave of consolidation in the credit hedge fund sector as battered funds look for ways to survive the market turmoil. Already a number of smaller managers have had to bow to the inevitable and merge with larger players…

Column: Nigel Sillis

The structured products that were once viewed as the F1 cars of the financial world - complex, efficient, high-performance - are now looking more like exhibits from Wacky Races

Q&A: Dennis Tracey & David Dunn

Banks are braced for a wave of litigation arising from the subprime crisis. But, as partners at law firm Hogan & Hartson point out, it won't just be subprime lenders that are facing law suits

MFS Investment Management: Smoothing out the bumps

As seasoned investors will tell you, putting your money in emerging markets can be a rough ride. The highs may be high, but the lows can be even lower. The emerging markets debt team at MFS Investment Management are aiming to give their investors a…

Profile: Bill Lindsay

The head of UK credit risk at Eurohypo tells Rob Mannix that the fundamentals of commercial property lending are just the same as they were pre-crisis

The squeeze is on - The clampdown on CDO ratings

The rating agencies have faced a barrage of criticism over their role in last year's subprime meltdown. This year they have been focusing on ensuring that a repeat of the ABS problems do not occur in other segments of the structured credit market. But…

The ABX index: A pricing conundrum

The liquidity crisis in the ABS market has led to investors using the ABX index as a valuation tool for individual securities - something the index was never designed for. Ben Logan explains the ramifications of this valuation practice

Can Fannie and Freddie fix the mortgage crisis?

The once-derided housing agencies, Fannie Mae and Freddie Mac, are being feted as potential saviours of the mortgage market after the authorities relaxed the laws limiting the amount of mortgage debt the agencies can hold. Simon Boughey reports

Back to basics

We take you back to the credit basics to review everything you thought you already knew but were too afraid to ask ..