Credit risk

Funds the key to unlocking Spanish market

Structured products distribution in Spain stalled during the financial crisis as banks turned away from open architecture. The answer seems to lie in fund-based products, for which the distribution networks remain open. Richard Jory reports from…

Counting the cost of counterparty risk

A few years ago no-one worried about counterparty credit risk. Then a year ago that was all anyone cared about. As markets begin to settle down, the shake-up could have longer-term implications for the structured products market. By John Ferry

Exposing counterparty risk exposure

Banks have focused on improving counterparty credit risk management capabilities since the onset of the financial crisis. How are they changing systems to ensure accurate monitoring of exposures on a real-time basis?

Collateral replacement

At the height of the financial crisis, manufacturers were quick to mitigate mounting counterparty risk concerns by deploying products issued by collateralised special purpose vehicles. But now, as the yield junkies return and retail appetite for…

Modest means

Credit loss models typically calibrate default separate from loss given default. Here, Jon Frye calibrates simultaneously, using credit loss data. This produces a surprising test result: the credit loss models do not significantly outperform a…

Scuppered by sukuk

Dubai World was bailed out by Abu Dhabi in December, but the near default of sukuk issued by Dubai property company Nakheel could have much broader implications for the development of Islamic finance.

A Firms hand

Lou Eccleston, executive managing director of Fixed Income Risk Management Services, talks to Alexander Campbell

Breaking the chains

The need to diversify customer credit risk and the rising importance of fiduciary standards make open architecture distribution vital to structured products’ future. As advisers become concentrated in bigger institutions and market volumes remain static,…

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