Credit markets
Basel II securitisation treatment too harsh, says Fitch
The treatment of securitisations under current proposals in the Basel Committee on Banking Supervision’s Basel II capital Accord is likely to be “overly punitive”, according to credit rating agency Fitch.
Japanese banks: Turning up the heat
Japan's banks have faced a gruelling few months in the run-up to the fiscal year-end, with a plunge in equity prices putting severe pressure on capital ratios. But a further crisis may be just around the corner, writes Nick Sawyer.
Japan credit spreads tighten as Iraqi conflict draws to a close
Credit protection on Japanese names continued a tightening trend this week, on the back of positive sentiment globally with the war in Iraq nearing a close and the absence of negative news in the domestic market.
Moody’s sees record Japanese yen CDO issuance
International rating agency Moody’s Investors Service said today it rated a record ¥3.02 trillion ($25 billion) of collateralised debt obligations (CDOs) in the first quarter of the year. That compares to full-year volume of ¥3.14 trillion in 2002.
Derivatives disclosure calls mount
Warren Buffett's stinging critique of the derivatives business in March represents the latest call for more derivatives disclosure. But despite some notable moves in this direction, most financial institutions remain stubbornly opaque.
Japan credit default spreads resume tightening due to CDO activity
Japan’s credit default swaps market resumed its tightening trend with protection sellers coming back to the market as the new fiscal year started, dealers said today. Recent spread widening offered some arbitrage opportunities related to collateralised…
Berating the raters
Last year the rating agencies were slammed in certain quarters for reacting too slowly to market events; this year, there are complaints that the agencies have overcompensated by reacting too fast. So what level of responsiveness will satisfy the bond…
Japanese banks get a breather but airlines continue to dip
The cost of credit protection on Japanese banks were off their lows, as the regulator eased earlier concerns that it may nationalise ailing banks. Meanwhile, the cost of protection on airlines continued to skyrocket as the war in Iraq and the spreading…
JP Morgan Chase and Morgan Stanley team to launch new credit indexes
JP Morgan Chase and Morgan Stanley plan to issue a raft of new 'Tracx' credit default swap indexes over the coming 12 months. The two have already launched their own versions of such products under the names Hydi and Jeci for JP Morgan Chase, and Tracers…
What everybody ought to know about this credit business
CDS guide: introduction
The ability to ‘trade rumours’
CDS guide: market indicators
CDSs as building blocks
CDS guide: new structures
The size of the CDS market
CDS guide: CDS growth
Buyers and sellers of CDSs
CDS guide: market participants
The big freeze
Cover story
Which credits are covered by the CDS market?
CDS: the basics
Risks to the system
CDS guide: conclusion
Laying down the ground rules
CDS guide: documentation
A world of trouble
Six Continents
Moody’s debuts CDO reports
Credit tech
Berating the raters
Rating agencies
Trawling the market
Profile
For love nor money
Salaries