Economics

Volatility returns to pre-Lehman levels

Market volatility across several sectors has dropped back to levels last seen before the collapse of Lehman Brothers in September 2008, lending weight to the belief that the financial markets are on the road to recovery.

Inflated expectations

It may seem counterintuitive, given these deflationary times, but inflation-linked fixed income strategies are proving a hit with investors as fiscal stimulus raises the threat that inflation will take over in the medium term. William Rhode reports

The sovereign state

While the sovereign market has in the past been most readily associated with rates investors, it has always been a key part of the credit sector, most importantly as a benchmark for the pricing of corporate bonds. But credit default swap levels on…

Stopping the rot

Noises from leading banks that they may be returning to profitability are failing to mask the painful truth that vast quantities of toxic assets are still causing a stink on banks' balance sheets. Credit looks at the various plans being put forward to…

FSA plans new capital formula for banks

The UK Financial Services Authority (FSA)'s chairman Adair Turner has outlined proposed new capital rules for UK banks, which would see minimum capital levels determined based on balance sheet growth or full-cycle loan book risk.

What to do with the toxic debt

The issue of how to tackle the vast quantities of impaired assets lingering on banks' balance sheets has given rise to several possible solutions, chief among which is the notion of a 'bad bank'. Credit asks five market participants how such a scheme…

Rick Watson

Securitisation has been damned as the carrier that took the subprime contagion to institutions across the world, but the head of the European Securitisation Forum insists that the real economy needs this funding source more than ever. Matthew Attwood…

The matchmakers

Evolution Securities, a London investment bank previously associated with the equities market and its advisory work with small- and mid-cap clients, has branched into fixed income with the recruitment of two credit market stalwarts, Guy Cornelius and…

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

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