Foreign exchange

Yen rise triggers PRDC hedging

The yen hit its highest level against the dollar since August 1995 on March 17, spurring banks to hedge exposures to power-reverse dual currency notes (PRDCs) and other similar structured products.

JP Morgan CDS exposure could top $10 trillion

JP Morgan’s proposed acquisition of Bear Stearns could push the bank’s already formidable footprint in the credit default swaps (CDS) market through the $10 trillion notional barrier, raising questions over the prudence of such large concentrations…

Wheels fall off LiquidityHub

London-based liquidity aggregation platform LiquidityHub stopped operating last week, having endured a lack of market interest in the face of the credit crunch.

Monolines - the nuclear option

XL Capital Assurance and Financial Guaranty Insurance Company (FGIC) face legal action by three banks after cancelling insurance contracts they had written on asset-backed securities transactions.

Banks sued over ARS lockdown

Morgan Stanley, UBS, Merrill Lynch and Deutsche Bank have been named as defendants in the first wave of legal action by investors left holding illiquid auction rate securities (ARS).

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