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Taking it slow
Hong Kong's banks are, for the most part, targeting the standardised approach outlined in the new Basel capital Accord, but it is hoped that this will act as a catalyst for the further improvements in risk management.
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.
Band of brothers
Some companies are assessing the need to share pooled information to manage clients more effectively, but the idea is unlikely to be welcomed by hedge funds
Soros to implement collateral management trade solutions
Algo Collateral system to provide derivative margining
Weighing up the credit risks
As the interest in credit derivatives grows, we unravel some of the technical applications of such products
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.
Landesbanken to offer credit loss database to third parties
Three of Germany's largest Landesbanken and the consultancy BearingPoint are planning to bring a credit loss database (CLD) that they are developing jointly to the market in the second half of this year. The tool is being designed to comply with the new…
Book extract > Regulatory Use of Credit Ratings: Implications for Banks, Supervisors and Markets
Barbara C. Matthews is Banking Advisor and Regulatory Counsel to the Institute of International Finance, Inc. (IIF). The views presented in this chapter, however, are her personal views and do not necessarily represent the views of the IIF or its members…
Enhancing CreditRisk+
Of the various analytical approaches to credit portfolio modelling, CreditRisk+ has become the most popular due to its tractability. However, the model suffers from the restrictive assumption of sector independence. Moreover, the recursion relation for…
Credit ensembles
Kevin Thompson and Roland Ordovas address the question of how individual counterparties contribute to the total credit risk of a portfolio. They provide an analytic method, new to credit modelling, to estimate all joint default statistics conditional…
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
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