|
Credit Risk - Monthly CDS Insight January 2010
Sovereign risk was the watch word at the turn of the year, and concern over Sovereign default in Western Europe continued to rise throughout January. Mounting budget deficits, accounting discrepancies and hesitant political action drove the Western European SovX to new highs, and a premium to the corporate iTraxx. Greece captured the headlines, though Portugal and France moved more in percentage terms over the month. Spain and Germany were also not that far behind, as credit traders suggested that trouble in Greece is an EU-wide problem, and FX traders sold Euro as a direct result.
|
Headline News, Tuesday, February 9, 2010
February 8: DvD Insights - A Happiness Survey of Risk Managers
Today’s fraud charges by the State of New York against former Bank of America CEO Ken Lewis prompted me to think about how people have tolerated the last three years of crisis, particularly risk management experts. That’s the subject of today’s post.
February 8: Country Risk - US Payroll Employment Disappoints Yet Unemployment Rate Sank
The January labour market report provided a mixed picture going into 2010. Disappointingly, job declines continued into January falling 20,000 in the month with the drop in December deepened to 150,000 from the previously estimated 85,000 decline. The increase in November was raised to 64,000 from a previous 4,000 gain.
February 8: Operational Risk- ISDA Augments Documentation Committee Leadership, Adds Advisory Board with Buy-side Expertise
ISDA)last week announced that it is broadening the leadership of the ISDA Documentation Committee by forming an Advisory Board that will encompass buy- and sell-side institutions to better represent global documentation needs across constituencies.
February 8: Economic Risk - Americans See Environment as Alternative Fuel Source for Economic Growth
Americans are hopeful that the environment will help rescue the struggling economy. Of the investors surveyed, 73% think that enacting policies to promote “green” practices and technologies will have a positive impact on economic growth.
February 8: Energy Risk - Growing the Green Evolution
American energy policy is a bit stop and go. While it's now centered on going green, the signals coming from Washington are always yellow and continually making participants hesitant to commit to long-term projects.
February 8: Operational Risk - ISDA to Publish Auction Terms for Lafarge
ISDA last week announced that LCDS dealers voted to hold an auction for European loan-only CDS transactions referencing a credit agreement entered into by, amongst others, the credit known as Lafarge Roofing.
February 5: Market Risk - Centralized Clearing of OTC Derivatives, Devil in the Details
A new Greenwich Market Pulse shows that corporations and financial institutions around the world broadly agree that moving OTC derivatives trading to a system of centralized clearing would be an effective means of managing both counterparty risk at an individual level and market-wide systemic risk. However, financials and corporates also have some serious concerns about the ongoing process of market structure reform.
February 5: Country Risk - Bank of England Maintains Bank Rate at 0.5% and Maintains the Size of the Asset Purchase Programme at £200 Billion
The Bank of England’s Monetary Policy Committee yesterday voted to maintain the official Bank Rate paid on commercial bank reserves at 0.5%. The Committee also voted to maintain the stock of asset purchases financed by the issuance of central bank reserves at £200 billion.
February 5: Job at Risk - Stronger National Renewable Electricity Standard Needed for Significant Clean Energy Job Stability and Growth
CEOs representing America’s renewable energy industries announced a major new study showing that a 25% by 2025 national Renewable Electricity Standard (RES) would support hundreds of thousands of new American jobs and prevent a near-term collapse in some industries. Job growth in the wind, solar, biomass, waste-to-energy and hydropower industries would particularly benefit the Southeastern U.S. and manufacturing states whose Senators have questioned the viability of renewable electricity.
February 5: Market Risk – US Long-Term Mortgage Rates Remain Stable and Low
Freddie Mac yesterday released the results of its Primary Mortgage Market Survey (PMMS)in which the 30-year fixed-rate mortgage (FRM) averaged 5.01 percent with an average 0.7 point for the week ending February 4, 2010, up from last week when it averaged 4.98 percent. Last year at this time, the 30-year FRM averaged 5.25 percent.
February 5: Speech – Carney on the Coming Thaw
The following are remarks by Mark Carney, Governor of the Bank of Canada, at Winnipeg Chamber of Commerce, Winnipeg, Manitoba.
February 4: Commentary - Does Anyone in Washington Know What Needs to Be Done to Create Jobs?
This is a question that I often get as I speak to groups around the country. Based on the ADP monthly survey of employment, small- and medium-sized firms (less than 500 employees each) are the fount (or black hole, as of recent months) of jobs in the U.S. economy. So, rather than asking Washington career politicians what it takes to create more jobs, why don’t we poll small businessmen and businesswomen?
February 4: Regulatory Risk - NERA Report Influenced SEC Decision to Reopen Comment Period on Proposed Shareholder Director Nomination Rules
The US Securities and Exchange Commission (SEC) reopened the comment period on its Proposed Election Contest Rules partially due to a report from NERA Economic Consulting’s Dr. Elaine Buckberg, Senior Vice President, and Jonathan Macey, Sam Harris Professor of Corporate Law at Yale University, analyzing the effects of the regulations on efficiency, competitiveness, and capital formation.
February 4: Energy Risk - ETRM Goes to School
With the aging of the workforce, the energy industry in the United States is facing the loss of the experienced and skilled resources that have developed, deployed and maintained the complex systems that underpin our energy infrastructure and the markets that operate within it. Anticipating the industry's needs, many universities in the United States have developed programs designed to equip new graduates with a broad understanding of many of the technologies that are required as this industry continues to rapidly evolve in the United States.
February 4: Economic Risk - US ISM Non-Manufacturing Index Rises in January
In January, the ISM Non-Manufacturing Index rose to 50.5 following December’s 49.8 reading. Expectations within financial markets were for a somewhat stronger gain to 51.0. New orders increased to 54.7 from December’s 52.0 reading, and employment rose to 44.6 from December’s 43.6. On the inflationary front, prices paid increased to 61.2 in January from 59.6 in December.
February 4: Credit Risk - Credit Outlook for US Diversified Financial Sector Mixed
Fitch's ratings outlook for the U.S. diversified financial services sector is mixed as credit metrics and financial performance will remain closely linked to the expected modest recovery of the U.S. economy.
February 4: Energy Risk - Crafting National Standards
Renewable energy is making a gradual presence in this country. But the key question facing U.S. lawmakers is whether to mandate broad portfolio standards or whether to continue giving the states the authority to determine such measures.
February 3: Commentary - Zombie Update, Loan Repurchases and REO Anyone?
As February 2010 begins, we are firmly in McCullough camp when it comes to the data overload and outlier confusion category. Evidence of financial improvement and decay are both in abundance, with no clear direction in either case. More noise than signal is the current state of many specific counterparty and market indicators, in part because many established assumptions are being dragged back into the maybe bucket.
February 3: Regulatory Risk - Private Sector Opposition to Tobin Tax Approaches 100%
More than nine out of 10 corporations and financial institutions around the world oppose government proposals to impose a tax on financial transactions, according to a new Greenwich Market Pulse.
February 3: Energy Risk - Senior US Oil and Gas Executives Expect Increased Employment for Upstream Sector this Year
Half of U.S. oil and gas senior executives expect to increase employment this year and two-thirds believe that the recession burdening 2009 will end this year, according to Grant Thornton LLP’s eighth annual Survey of Upstream U.S. Energy Companies.
February 3: Operational Risk - CPSS-IOSCO Review of Standards for Payment, Clearing and Settlement Systems
The Committee on Payment and Settlement Systems (CPSS) and the Technical Committee of the International Organization of Securities Commissions (IOSCO) have launched a comprehensive review of their existing standards for financial market infrastructures such as payment systems, securities settlement systems and central counterparties.
February 3: Weather Risk - Winter '09-'10 (Interim) Weather Verifications
Year of the Southern Winter" continues across USA, with East secondarily maintaining Cold...... Cumulative Winter Season relatively tame/Normal for both MidWest AND pop-weighted USA compared to Last Year....
February 3: Industry Risk - Many Retirement Plan Sponsors Challenged by New Regulations
Although the new regulations governing 403(b) defined contribution retirement plans are already in effect, many retirement plan sponsors admit to not fully understanding compliance requirements, according to a survey from the TIAA-CREF Institute.
February 3: Testimony – Geithner on Recovery and Job Creation
The following is testimony by Treasury Secretary Timothy F. Geithner before the Senate Committee on Finance.
February 2: Credit Risk - Kamakura Reports 9th Improvement in Corporate Credit Quality in Last 10 Months
Kamakura Corporation announced Tuesday that the Kamakura index of troubled public companies improved in January for the ninth time in the last ten months. The index declined from 11.07% in December to 10.23% in January. Kamakura’s index had reached a peak of 24.3% in March, 2009. Credit conditions are now better than credit conditions in 68.2 percent of the months since the index’s initiation in January 1990, and the index is 3.50 percentage points better than the index’s historical average of 13.73%.
February 2: Case Study – Risk Management Technology at GFI Group
The ability to react to events that impact risk rather than merely perform complex calculations is a key driver for how our internal platform is defined. As is the need to move from a periodic “snap-shot” view of risk to an event driven continuous update view. We also endeavour to provide tools to our Risk Department in order to model potential exposures in anticipation of future events so we can evaluate how best to respond before an incident occurs.
February 2: Regulatory Risk - US SEC and UK FSA Hold Fifth Meeting of the SEC-FSA Strategic Dialogue
Securities and Exchange Commission Chairman Mary Schapiro and UK Financial Services Authority (FSA) Chairman Adair Turner and Chief Executive Hector Sants met in London yesterday as part of the SEC-FSA Strategic Dialogue. The purpose of the Dialogue, established in 2006, is to engage at the senior levels of the two agencies on current matters affecting the U.S. and UK capital markets and areas of future collaboration. This was the fifth meeting of the Dialogue.
February 2: Commentary - Obama's Challenges
As President Obama rounds the corner and heads into the second year of his administration, he is discovering what nearly all of his predecessors have -- that voters become disenchanted during the midterm and tend to elect more of the opposition.
February 2: Humor - An Ode to the Credit Crunch
The credit crunch has dealt an almighty blow, And business is now at an all time low. The banks they acted like they walked on water, Who ever thought we would see them falter.
February 2: Country Risk - Treasury Budget Focused on Building New Foundation for Economic Growth, Reform of the Financial System
As a part of the Administration's commitment to making tough choices and streamlining programs that work in order to lay the foundation for long-term economic growth, Treasury Secretary Tim Geithner highlighted key components of the President's FY 2011 Budget intended to continue our nation down the path to economic prosperity.
 |
Regular Features |  |
Escalating Risk Visibility - The Professional Risk Management View of the Role of the CRO 
Counterparty Risk in Structured Finance Transactions: Swap Criteria 
Risk Manager’s Toolkit - Sure-Fire Spreadsheet Tips and Tricks for the Practicing Risk Manager Enterprise Risk - Fighting Risk Measurement Myopia, Creating a Risk Inventory and Gap Analysis, and Dealing with Obstacles to Enterprise-Wide Risk Management Market Risk - Global Currency and Treasury Guide 
|
Informatica White Papers |
|
Land Grab, Winning the Coming Competition for Corporate Payments BusinessRecession-Proof the Business, The Top Five Ways IT Organizations Can Help Companies Survive a Tough Economy |
Hands-on Finance Tutorials |
|
Hands-on Finance Tutorial #7 – Balance Sheet Analysis Hands-on Finance Tutorial #6– Yield Curve Building 
Hands-on Finance Tutorial #5 - Historical Data Analysis, A Basic Trading Strategy Hands-on Finance Tutorial #4 - Fixed Income Fundamentals Hands-on Finance Tutorial #3 - Cash Flow and Equity Analysis Hands-on Finance Tutorial #2 - Foreign Exchange Fundamentals and Applications Hands-on Finance Tutorial # 1- Rates & Discount Factors |
Fusaro Tutorials | |
Tutorial - European Natural Gas, Towards a Competitive Market Tutorial - Weather Trading, Raising the Temperature in Monte Carlo Tutorial - Bandwidth Trading and Risk Management, Developing a Market Tutorial – Emissions, Trading in Practice Tutorial - Electricity Trading, Europe and North America |
BIS Working Papers | |
The Great Depression As A Credit Boom Gone Wrong Currency Crises And The Informational Role Of Interest Rates Principles For The Management And Supervision Of Interest Rate Risk Markets for Bank Subordinated Debt and Equity in Basel Committee Member Countries The Role of Central Bank Money In Payment Systems Risk Management Principles For Electronic Banking Overview of The New Basel Capital Accord |
Federal Reserve Bank Papers |
|
|
Global Reports | |
Weather Risk - Weather Data Verification Tables Corporate Defence Insights Full Series Corporate Defense Insights - Dispatches from the Front Line Risk Professional Compensation Survey Business Resilience - Ensuring Continuity in a Volatile Environment The CDM Paradigm Corporate Defence Management (CDM) Continuum 2006 Professional Compensation Survey, Risk Consulting 2006 Professional Compensation Survey, Corporate Risk An Executive Guide to Corporate Defense Management (CDM) Catastrophe Risk Management, Preparing for Potential Storms Ahead Japan, Discussions on Advancing Credit Risk Management through Internal Rating Systems Superstars or Average Joes? A Replication-Based Performance Evaluation of 1917 Individual Hedge Funds Regulatory Risk - Trends and Strategies for the CRO Risk Management Compensation Survey Operational Risk - Bank Capital, Agency Costs, and Monetary Policy What Does the Risk-Appetite Index Measure? Commentary – The New Player In The Risk SpaceGuide to the Sarbanes-Oxley Act, Internal Control Reporting Requirements |
RiskCenter Events | |
|
noname | |