Credit risk
US municipalities wary of two-way CSAa
Cornered on collateral
Credit investors up in arms over lax covenants
Investors are complaining that documentation for high yield bond deals has become increasingly opaque and poorly structured, making it difficult to gauge the level of risk. Will the glut of high yield supply that is set to hit the market over the coming…
Repricing of sovereign debt would be an 'earthquake' for financial markets – chief economist
The chief economist at Independent Strategy, Bob McKee, explains why a repricing of sovereign debt and defaults of advanced economies would be “logical” outcomes in the next stage of the financial crisis.
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.