Analysis
Confidence crunch
Many financial institutions calibrate their required level of economic capital by considering the probability of default associated with a target debt rating. However, as the financial crisis has shown, confidence in a bank can erode before its Tier I…
A variable response to pro-cyclicality
Ensuring banks put in place counter-cyclical capital buffers has become a key area of focus for regulators across the globe, with some proposing capital buffers be based on financial or macro variables. Alessandro Conciarelli and Mario Quagliariello…
Spotlight on exposure
The pricing of derivatives credit charges and risk management of counterparty credit risk portfolios pose many challenges. Julian Keenan reviews the approaches available and makes some recommendations
Market focus: derivatives - Risky business
Companies that are heavy consumers of energy are particularly susceptible to market volatility. For such end-users, proper use of risk management techniques can mean make or break, says Eric Fishhaut of GlobalView
Evaluating credit & market exposure
Today’s volatile energy prices and the lower creditworthiness of some energy intensive users means energy providers have to assess counterparty risk thoroughly. David Coffman of GDF SUEZ Energy Resources provides some tips for assessing risk in the non…
Finding certainty in uncertainty
Pension funds need to operate efficiently during periods of long-term uncertainty, so how can they best mitigate their risks? Theo Kocken, chief executive of Cardano, examines two theories by Keynes and Pascal on decision-making during uncertain times
Trade of the month: Secondary trading
The secondary trading of structured products in the UK is limited by low liquidity, which is partly due to bid-offer spreads that are wide enough to deter investors. While most providers of retail structured products in the UK publish prices throughout…
Market snapshot
Tim Mortimer of Future Value Consultants looks at the pricing issues for structured products in different markets and provides his trade of the month
ESG: Credit investing with a conscience
Making investment decisions based on environmental, social and governance (ESG) factors isn't just a woolly-minded 'trendy' move designed to appease the hairshirt-wearing green lobby. It actually makes financial sense, as Caroline Harrison of ASSET4…
More for your money
A new OR&C Intelligence Survey shows that, as profits fall and levels of fraud increase, financial institutions are working hard to adopt an enterprise-wide approach to fraud management. Victoria Pennington assesses the results
Market graphic - A consensus for valuation input assumptions
Money managers' expectations for the 12-month performance of underlying loans behind European RMBS are showing signs of improvement, says Peter Jones