Analysis

A regulated new year

Regulators are widely expected to increase their oversight of the financial sector in the coming year, with derivatives likely to come under particular scrutiny. As part of the current series of Class Notes articles, Charles Smithson and Steve Allen…

CDS risks

Claims that credit derivatives were a major cause of the financial crisis have prompted regulators to threaten to clamp down on the market. In the latest in the current series of Class Notes, Charles Smithson examines some of the risks of credit default…

A counter-cyclical Basel II

The Basel Committee on Banking Supervision is making various changes to the Basel II framework in the wake of the financial crisis. But Ryozo Himino argues there should be greater focus on incorporating a built-in stabiliser into the Accord

Credit solution

Many companies have used hedge accounting rules for interest rate hedges, but hedge accounting for credit risk is much less common. Dirk Schubert argues hedge accounting for this type of risk can be applied, and proposes a possible solution

Guilty or not?

Rating agencies have been widely criticised for assigning AAA ratings to securitisations backed by subprime mortgages. Ashish Dev and Bo Qian argue that while the criticism is justified for some securitisation structures, there was a basis for assigning…

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

A regulated new year

Regulators are widely expected to increase their oversight of the financial sector in the coming year, with derivatives likely to come under particular scrutiny. In the latest in the current series of Class Notes articles, Charles Smithson and Steve…

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

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

Hammer time

The approval by the US Congress of a $700 billion rescue package in October has paved the way for the US Treasury to purchase illiquid assets from banks' balance sheets. The question is: how will these assets be valued? In this month's Class Notes…

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... Michael Thompson of Standard & Poor's looks at factors influencing the credit crisis

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

Valuing hard-to-value assets

In this Class Notes article, Charles Smithson considers some of the lessons learned from the recent credit crisis. In particular, he reflects on the difficulties faced by many institutions in valuing illiquid structured finance instruments, and makes…

All under control

Jeff Roth and Wally Musegades outline how it is possible to reduce exposure through active control management, and for the op risk function to make a positive contribution to business results

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