Credit risk
Asia Risk 15: Credit derivatives perform vital role but at heavy cost
The emergence of credit risk mitigation techniques has enabled banks to continue lending while easing their concentration risks. But this has come at a heavy cost, as investors in many complex, leveraged synthetic structures discovered following the…
Q&A: Shell Gas Direct’s Mike Hogg
Turning up the heat
Credit trends prompt energy data management rethink
A new awareness of the importance of monitoring credit risk alongside market risk has prompted a need for better risk aggregation within energy companies, according to experts
Seven banks fail Cebs stress tests
Institutions in Germany, Spain and Greece would be unable to maintain capital levels under “adverse scenarios”
Is the CFA qualification worth sweet FA? Caveat Emptor column
Chartered Financial Analyst, the qualification that is de rigueur for any aspiring fund manager, fails to address the principles of proper risk management.
German economy under pressure from bank losses and euro crisis
Bond investors have snapped up German Bunds in recent weeks, with Europe’s sovereign debt crisis triggering a flight to quality. But is Germany really the safe haven it appears? Credit explores potential vulnerabilities in the German economy and assesses…
Basel II and Basel III: Top articles from Risk.net
The ink was hardly dry on Basel II when the international financial crisis saw that agreement being ripped up and recreated as Basel III.
Exclusive Kaminski Video: energy risk management challenges
The energy markets still face an unprecedented level of regulatory risk over the next year, as impending changes to the US financial system loom, while at the same time, BP’s Gulf of Mexico oil spill has presented major operational risk factors for the…
Contagion fears drive volatility
The takeover of a Spanish savings bank last month and rumours of funding difficulties at the country's financial institutions spook investors
When market and credit risk collide
The financial crisis highlighted that interactions between market risk and credit risk could expose banks to greater risks than had been assumed. Banks are responding by altering their structure and the models they use – but it is by no means an easy…
Plane sailing for EADS
Jean-Baptiste Pons, head of corporate finance and treasury at EADS, talks to Alexander Campbell
Credit spread widening fails to generate buying interest
Despite spreads widening last month to more attractive levels, investors remain cautious on expectations of a prolonged period of volatility for the credit markets.
Market Analysis: Effective credit risk analysis
Market participants are conducting credit risk analysis on a growing number of counterparties, many of which are smaller, non-public and unrated firms, says S&P.
Reversal of fortune
Inverted swap spreads have defied earlier predictions that they were a short-term aberration to still be a feature 18 months after their first appearance. Is this set to continue and, if so, does it pose an opportunity for pension schemes and insurers?…
CVA desks trim hedges as bailout crushes CDS spreads
It was a hectic start to the week for CVA traders, as the eurozone bailout shrank the exposures many faced, leaving them over-hedged.
New approaches to energy credit risk management
The aftermath of the financial crisis led to some innovative approaches to tackling energy credit risk. Pauline McCallion looks at developments and asks whether proposed US and European regulation will help or hinder innovation in this space
Interview: Darrell Duffie on credit risk modelling
Stanford University’s credit risk expert, Darrell Duffie, talks with Katie Holliday about changes in the modelling of credit risk within energy markets since the financial crisis
Credit data vendors focus on liquidity metrics
Vendors and their clients are focusing on the implementation of liquidity analytics to boost credit risk management