Germany

US retreat hits European trading

The retreat of US energy firms from energy trading has reportedly hit European volumes hard. But volumes aside, James Ockenden finds that the withdrawal may bring a fundamental change in the market. With additional reporting by Eurof Thomas

Risk management based on stochastic volatility

Risk management approaches that do not incorporate randomly changing volatility tend to under- or overestimate the risk, depending on current market conditions. We show how some popular stochastic volatility models in combination with the hyperbolic…

S&P says Basel II helping to improve German banking

FRANKFURT – The proposed Basel II bank safety rules, weak operating performance and shareholder value considerations are behind a trend to more efficient capital allocation, prudent cost control and risk-adjusted pricing in German banking, a leading…

Banding together for SME credit risk analytics

Germany's banking associations are taking a leading role in getting the country's fragmented banking sector ready to comply with the Basel II capital Accord. Germany's savings banks association, in particular, says it has internal ratings-based systems…

Key Basel II package expected tomorrow

BASEL – Global banking regulators plan to issue a package of documents on the Basel II bank accord tomorrow, including a key survey seeking information on how the complex, risk-based accord might affect banks around the world.

German Finance Agency initiates swaps programme

The German Finance Agency has begun its interest rate swaps programme to manage the risk on its debt portfolio. The Agency first gave an indication it would enter the swaps business in January, and now plans to transact up to €20 billion in swaps…

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