Democrats Differ on Derivatives - Wall Street Journal
Ahead of a pivotal vote on financial regulation, divisions are emerging among Senate Democrats over how best to strengthen oversight of the market for derivatives. (more...)
G-20 Leaders Fail to Reach Specific Pact - Wall Street Journal
G-20 finance officials failed to reach any specific agreements and were skeptical about a proposed bank tax, but said they were still building momentum for financial reform. (more...)
Fed's Focus: Selling Mortgage Bonds - Wall Street Journal
Fed officials will begin talking about how to sell the central bank's holdings of mortgage-backed securities without jarring financial markets and the nascent economic recovery. (more...)
Foreign Firms Grab Failed U.S. Banks - Wall Street Journal
Some growth-hungry non-U.S. banks have a new item on their shopping lists: small banks in the U.S. that are crumbling under bad loans and the weak economy. (more...)
Greece spreads tighten back on financial aid request - Creditflux
Greece credit default swaps have rallied back today after it succumbed to market pressure and officially asked for financial rescue by the EU and IMF (more...)
ECB moves to restore confidence in securitisation - Financial Times
Managers of asset-backed securities held by the European Central Bank will have to provide far more data on the loans backing the bonds (more...)
Why doesn’t the UK Treasury like covered bonds? - Financial Times
The UK Treasury waded into the “are covered bonds a good liquidity buffer for banks?” debate on Friday.EuroWeek’s The Cover reported the ministry’s feelings... (more...)
Goldman Backlash in Germany - Wall Street Journal
The Wall Street firm's approach to winning business is coming under fire from German officials, companies and banks in the wake of an SEC civil-fraud suit. (more...)
Reflections on the Greek melt down - Financial Times
It was hard to miss Greece’s blow-up in the debt markets on Thursday. Well, where to from there? First up, it’s Deutsche Bank’s Jim Reid, who says these are... (more...)
Comment, analysis and other offerings from Friday’s FT,George Soros: America must face up to the dangers of derivativesThe US Securities and Exchange Commission’s civil... (more...)
Credit researcher says ILFC debt is a buy - Creditflux
Credit research firm KDP Advisor recommends buying AIG subsidiary ILFC’s $1.5 billion outstanding of 8.75% senior notes, and its $750 million outstanding of five-year Libor plus 475 basis points term loans in a new research report. KDP says that ILFC’s anticipated increased cashflow from reduced purchase commitments and asset sales… (more...)
Isda puts credit default swap notionals at $30 trillion - Creditflux
In its 2009 year-end survey of the size of the over-the-counter derivatives market, Isda calculates that there was $30.4 trillion of credit default swaps outstanding at the end of last year. This is down only 3% on the middle of last year, but 21% lower than at the end of… (more...)
BNP Paribas makes exotic credit trading hire - Creditflux
BNP Paribas is understood to have hired an exotic credit trader from Barclays Capital in New York (more...)
Another aircraft leasing company issues bonds - Creditflux
Premier Aircraft Leasing, an Irish aviation leasing firm, sold $188.165 million of 12-year, 3.547% secured notes on Thursday, which are guaranteed by the US Export-Import Bank. The Ex-Im Bank is a function of the US Treasury Department. Demand for bonds from leasing companies has picked up in recent months, somewhat… (more...)
Dealers settle Japan Airlines CDS - Creditflux
Yesterday’s dealer-held auction to determine the final price of credit default swaps referencing Japan Airlines returned a low value of 20 cents. The airline filed for bankruptcy in January. 14 dealers took part in the auction and produced an inside market midpoint of 18. Dealers set four point bid/offers, varying… (more...)
CLO managers have bought more than $600 million of CLOs, says Citi - Creditflux
Alcentra has been the biggest buyer of CLO tranches to add to its own CLOs, according to research by Citi. The bank notes that CLO tranches can be an appealing investment for CLOs since they typically provide a higher yield than corporate assets. (Presumably, they also offer good scope for… (more...)
Interest Rate Swaps Market Sees Rise In Electronic Trading - Wall Street & Technology
The post-trade services market value in the interest rate swaps (IRS) space is expected to skyrocket from US$200 million in 2009 to US$500 million in 2012, according to a new report from Celent. (more...)
Goldman CDO Man Wrote "How I Caused Credit Crunch" - Wall Street & Technology
The writer of a book entitled "How I caused the credit crunch" worked for the unit of Goldman Sachs that sold the financial product at the heart of U.S. fraud allegations against the bank. (more...)
Why bets on synthetic CDOs must be banned - Financial Times
Goldman Sachs acted with a financial instrument of mind-bending complexity. Was it a sensible thing to do? Does the public have any interest in investment banks behaving like this? The answer to both questions is 'no' (more...)
CDS report: Market still sees significant near-term risks to Greece - Financial Times
Here in the credit markets we’re becoming used to political fireworks on a Friday. Those hoping for a quiet end to the week have been disappointed; the sovereign credit... (more...)
Paulson Role Not Made Clear - Wall Street Journal
Credit-rating company officials faced a new round of criticism, as a Senate committee grilled a string of analysts and executives, accusing them of being too influenced by Wall Street and too greedy for profits. (more...)
Lehman Estate Seeks to Undo Nomura Claims - Wall Street Journal
Lehman Brothers' bankruptcy estate sued three arms of Nomura Holdings in an attempt to wipe out more than $1 billion of claims related to derivatives contracts. (more...)
Bank Tied to Illinois Candidate Fails - Wall Street Journal
Illinois regulators shuttered a Chicago bank tied to the Democratic candidate running for Obama's former U.S. Senate seat, state Treasurer Alexi Giannoulias. His role at the institution has become a central issue in the race. (more...)
Moody's Ex-Analyst Defends the Firm - Wall Street Journal
Credit-rating company officials faced a new round of criticism, as a Senate committee grilled a string of analysts and executives, accusing them of being too influenced by Wall Street and too greedy for profits. (more...)
New-Homes Sales Jump 27% - Wall Street Journal
New-home sales jumped in March as buyers rushed to qualify for a federal tax credit and realtors honed in on the soon-to-expire credit as a way to ramp up interest. (more...)
Breaking pre-market news on Thursday,- Credit Suisse posts Q1 net profit of SFr2.1bn – statement.- Deutsche Bahn agrees £1.6bn bid for UK’s Arriva – statement.... (more...)
Citigroup steps back into the RMBS market - Financial Times
Citigroup is marketing the first US private bonds backed by new residential mortgages since 2008, despite ongoing uncertainty over the future of a market that was at the heart of the credit crisis (more...)
Rifts Imperil Overhaul of Global Banking Rules - Wall Street Journal
The global response to the financial crisis has given way to bickering, imperiling hopes that governments around the world can come up with a fix for outdated international-banking rules. (more...)
Moody's Cuts Toyota Credit Rating - Wall Street Journal
Moody's Investors Service cut its credit rating on Toyota Motor by a notch, matching its lowest-ever level on concerns about the auto maker's profitability and ability to stay ahead of rivals on pricing power. (more...)
BlueBay wins big inflows into investment grade credit - Creditflux
Listed credit manager BlueBay Asset Management brought in more than $2 billion of additional funds under management into its biggest category, investment grade credit, in the quarter ending 31 March. The net subscriptions of $2.1 billion, along with fund appreciation of $600 million, took its investment grade funds under management… (more...)
Europe’s sovereign credit crisis moves west - Creditflux
The sell-off in Greek debt gathered pace yesterday, with the country’s five-year credit default swap widening another 25 basis points (more...)
Car Makers Stabilize - Wall Street Journal
GM repaid a $6.7 billion U.S. government loan ahead of schedule while Chrysler reported a first quarter operating profit and boosted its cash reserves, offering tentative signs of a turnaround at the auto makers following government engineered bankruptcies. (more...)
Credit Suisse's Net Profit Climbs - Wall Street Journal
Credit Suisse posted a 5% rise in net profit, on healthy fixed-income results at its investment bank and lower costs, and voiced confidence in its outlook. (more...)
MBIA sues RBS over CDS termination trigger, reports Bloomberg - Creditflux
Bloomberg reports that MBIA is suing Royal Bank of Scotland over a $2 billion credit default swap which contained a termination trigger if RBS’s rating fell below a certain level. MBIA has asked a UK court to approve the termination of the contract, according to the article. It goes on… (more...)
Hungarian watchdog fines Deutsche Bank on FX swap deals - Financial Times
The Hungarian watchdog has moved to fine Deutsche Bank in connection with activities related to fx swap deals in 2008, reports FT Alphaville. The move is interesting not because... (more...)
Greek debt costs get higher and higher - Financial Times
Greek debt doomsday bullet points for Thursday:CMA Datavision reports Greek five-year CDS have jumped to a record high of 505 basis points versus 485.7 bps in the previous session;Greek/German... (more...)
Credit Suisse Posts Slight Rise in Net - Wall Street Journal
Credit Suisse said first-quarter net profit rose 2.4%, but it failed to match the healthy quarterly showings from U.S. rivals in recent weeks. (more...)
Alpstar launches new European credit fund - Creditflux
Geneva-based credit manager Alpstar Capital has announced the launch of a new fund, the Alper European Credit Fund. The company describes the new entity as a more mainstream and diversified version of its existing long-only credit fund set up in 2008. The fund offers monthly liquidity and carries a 1.5%… (more...)
Traders turn their sights on BofA as dealers trade dealers - Creditflux
The most active names traded by credit derivative dealers yesterday were… credit derivative dealers, as it became increasingly likely that other investment banks would be dragged into the CDO mis-selling investigations currently centred on Goldman Sachs. Earnings have become an irrelevance to the credit market, as bank after bank has… (more...)
Existing-Home Sales Jump - Wall Street Journal
Existing-home sales rose in March on a surge in first-time home buyers ahead of the expiration of a tax credit. Separately, initial claims for jobless benefits fell and U.S. wholesale inflation accelerated on food and energy prices. (more...)
Credit Suisse Net Rises Slightly - Wall Street Journal
Credit Suisse said first-quarter net profit rose 2.4%, but it failed to match recent healthy quarterly showings from U.S. rivals. (more...)
Earnings, Greece Weigh on Stocks - Wall Street Journal
Stocks fell on disappointing earnings reports and after Moody's lowered its credit ratings on Greece and warned that further cuts were possible. Technology shares were hit by disappointing earnings. (more...)
Morgan Stanley Posts Strong Profit - Wall Street Journal
Morgan Stanley swung to a profit of $1.78 billion in the first quarter, as the investment bank said efforts to revive its trading unit 'are beginning to pay off.' (more...)
German bank loses out as Elvis fails to appear in Vegas - Creditflux
Court filings show that a German bank is the largest creditor to FX Luxury Las Vegas I, a unit of FX Real Estate and Entertainment (more...)
Moody's sees hung parliament as positive - Financial Times
A hung parliament could help rather than hinder the UK's efforts to deal with its largest postwar government deficit if it delivers public support for spending cuts, according to a leading credit rating agency (more...)
CDS report: Peripheral panic - Financial Times
It was a record-breaking day in the sovereign CDS market, though not for reasons that any government would welcome. Spreads blew out on a day of unprecedented volatility. Greece... (more...)
Obama Scolds Wall Street for Fighting Reform - Advanced Trading
U.S. President Barack Obama scolded Wall Street Thursday for risk-taking that led to the financial crisis and urged the banking industry to stop its "furious efforts" to block tighter regulations. (more...)
‘Big bankers stared at one another in anger and astonishment’ - Financial Times
From the archives of Time magazine, a worthwhile read on how US bankers reacted to the “monstrous system of guaranteeing bank desposits” – aka, financial regulation,... (more...)
Home Sales Jump, but Outlook Remains Cloudy - Wall Street Journal
Tax credits spurred a large jump in home sales, as first-time buyers took advantage of low prices and interest rates. But the longer-term outlook for the market remains clouded, with a large inventory of foreclosed homes expected to hit the market. (more...)
Major Indexes Trim Early Losses - Wall Street Journal
A credit downgrade of Greece weighed on the stock market, but major indexes managed to trim their early losses, helped by a rally among home builders. (more...)
Rifts Imperil Bank-Rule Overhaul - Wall Street Journal
The global response to the financial crisis has given way to bickering, imperiling hopes that governments around the world can come up with a fix for outdated international-banking rules. (more...)
Blackstone Joins Extended Stay Bid - Wall Street Journal
Blackstone Group is joining an investor group led by Centerbridge Partners and Paulson & Co. to make a $905 million bid for Extended Stay and take the hotel chain out of bankruptcy-court protection. (more...)
Derivatives traders search for ways to appease regulators - Financial Times
As Barack Obama took to the stage in New York to admonish Wall Street, hundreds of derivatives industry participants were gathered on the other side of the US to mull over their futures (more...)
Banks, Builders Lead Stocks Up - Wall Street Journal
A strong reading of home sales and a sigh of relief among traders following President Obama's speech on financial reform led to a comeback in the stock market. (more...)
Movie derivatives - Financial Times
Lights, camera, inaction! Hollywood and politicians quash the idea of film futures, which would have allowed punters to bet on box office take (more...)
California heightens scrutiny on CDS - Financial Times
California, the largest issuer of state debt in the US, said it would require the 86 firms that underwrite its bond sales to report quarterly with details on their activity in credit default swaps, potentially lifting the veil on a largely unregulated make (more...)
Climax Looms for Finance Bill - Wall Street Journal
Obama used a Manhattan speech to urge top banking executives to back his sweeping overhaul of financial-market rules, while in Washington the bill gained steam as cracks in the Republican opposition improved its prospects in Congress. (more...)
Goldman Backlash in Germany - Wall Street Journal
The Wall Street firm's approach to winning business is coming under fire from German officials, companies and banks in the wake of an SEC civil-fraud suit. (more...)
Foreign Firms Grab Failed U.S. Banks - Wall Street Journal
Some growth-hungry non-U.S. banks have a new item on their shopping lists: small banks in the U.S. that are crumbling under bad loans and the weak economy. (more...)
Foreign Firms Scoop Up Failed U.S. Banks - Wall Street Journal
Some growth-hungry non-U.S. banks have a new item on their shopping lists: small banks in the U.S. that are crumbling under bad loans and the weak economy. (more...)
Recovering Economy Helps Card Firms - Wall Street Journal
American Expresss first-quarter profit doubled, handily topping analysts' expectations, while Capital One swung to a much-higher-than-anticipated profit as the credit-card giants saw loan-loss provisions fall. (more...)
Recovery trading picks up as investors look beyond Greek default - Creditflux
Activity in recovery swaps linked to Greece is picking up as credit traders begin to focus on the likely outcome of any Greek default (more...)
Deutsche names Sprenger as head of ABS trading, reports Bloomberg - Creditflux
Bloomberg reports that Deutsche Bank has made Pius Sprenger head of ABS and CDO trading, presumably in New York. He replaces Greg Lippmann, who is said to be joining a buy-side firm being set up by Deutsche’s former global markets head Fred Brettschneider. Sprenger previously ran ABS and CDO trading… (more...)
The UK banking cartel - Financial Times
The banks team at Citigroup advising clients on Wednesday morning to 'buy', 'buy', 'buy' UK financials. And specifically: Barclays and, Lloyds reports FT Alphaville. That's because... (more...)
Subprime sushi - Financial Times
FT Alphaville provides a Japanese haiku in commemoration of Greg Lippmann's time at Deutsche Bank after Bloomberg reports the avid raw-fish eater, and one of the first people to short subprime,... (more...)
ECB’s annual report sheds light on collateral use - Financial Times
The European Central Bank published its Annual Report on Monday evening, providing some key insights on the nature of its operations over the last year.Among the details —... (more...)
IMF Backs New Global Tax on Banks - Wall Street Journal
The IMF advised the G-20 nations to enact taxes on the balance sheets, profits and compensation of financial institutions to pay for the cost of shutting troubled financial firms in the event of another financial crisis. (more...)
Lawmakers Seize on Lehman's Failings - Wall Street Journal
Lawmakers took aim at Lehman Brothers and federal regulators for the investment bank's collapse, accusing the firm of manipulation and its watchdogs of negligence. (more...)
US theme park rides loan investors down - Creditflux
Theme park Universal Orlando is asking its creditors to ammend a five-year term loan issued last fall. (more...)
“Nine” names drive investment grade trading - Creditflux
It was a blast from the past yesterday as monolines became some of the most talked about credits in the North American market (more...)
Counting the cost of the IMF’s bank taxes - Financial Times
If the IMF really does want two big new levies on banks, we’d better run the numbers. The snap conclusion of most bank analysts is that the International Monetary Fund’s... (more...)
Totting up a Greek Götterdämmerung, Part II - Financial Times
Put apocalypse on hold. Bundesbank president Axel Weber has now denied that he said Greece may need €80bn in the years after an eventual rescue by the Eurozone and IMF, contrary... (more...)
Chrysler Reports $4 Billion Loss - Wall Street Journal
Chrysler lost nearly $4 billion since exiting bankruptcy last year, but the company reported a first-quarter operating profit this year and increased its cash reserves. (more...)
SEC Weighs Rules on 'Masking' Bank Debt - Wall Street Journal
The SEC is considering new rules that would prevent large banks from masking risks by temporarily lowering their debt levels before quarterly reports. (more...)
IMF Backs Global Tax on Banks - Wall Street Journal
The IMF advised the G-20 nations to enact taxes on the balance sheets, profits and compensation of financial institutions to pay for the cost of shutting troubled financial firms in the event of another financial crisis. (more...)
Northern Rock CFO Exits - Wall Street Journal
Government-owned bank Northern Rock said Chief Financial Officer David Jones has left the company after being drawn into an investigation by the Financial Services Authority. (more...)
Deutsche Bank Names Lippmann's Successor - Wall Street Journal
Deutsche Bank said its European head of asset-backed and CDO trading, Pius Sprenger, would assume global responsibilities in those areas, succeeding Greg Lippmann. (more...)
Lehman Exec Who Flagged Repo 105 Was Suddenly Fired - Wall Street & Technology
A former executive at Lehman Brothers said Tuesday that he was suddenly fired in 2008 after raising concerns about the now-bankrupt firm's accounting practices, including "Repo 105" transactions. (more...)
Why we need a resolution authority for Europe's banks - Financial Times
The global economic crisis has exposed serious gaps in the EU's ability to act when a bank runs into trouble and its problems threaten to spill across borders, writes Marek Belka (more...)
Deutsche hires distressed trading head from Goldman - Creditflux
Deutsche Bank has announced that it has hired Goldman Sachs loan trader Stephen Byrne to head distressed credit trading in Europe. He reports to Gavin Colquhoun, who was previously the head of distressed trading, and who is now head of the distressed products group. Byrne worked for 14 years at… (more...)
CDS report: Greece at fresh record wides - Financial Times
European credit markets fell back today as sovereign concerns weighed on spreads. There was no fresh news that triggered the widening, but it was no surprise that Greece was again... (more...)
Blackstone Joining Extended Stay Bid - Wall Street Journal
Blackstone Group is joining an investor group led by Centerbridge Partners and Paulson & Co. to make a $905 million bid for Extended Stay and take the hotel chain out of bankruptcy-court protection. (more...)
IFC in emerging market finance deal - Financial Times
International Finance Corporation, the private sector arm of the World Bank, has struck an innovative deal to provide $1bn of trade finance to poor countries through a synthetic securitisation with Standard Chartered (more...)
Morgan Stanley Posts Strong Profit - Wall Street Journal
Morgan Stanley swung to a profit of $1.78 billion in the first quarter, as the investment bank said efforts to revive its trading unit 'are beginning to pay off.' (more...)
Homebuilder piles on more debt to pay off creditors - Creditflux
Standard Pacific, a developer of residential homes in the US, is offering $200 million eight-year senior notes. (more...)
SEC Weighs Rules on Bank Debt - Wall Street Journal
The SEC is considering new rules that would prevent large banks from masking risks by temporarily lowering their debt levels before quarterly reports. (more...)
[Abacus] Appearing soon in the Senate – fabulous Fab (updated) - Financial Times
Fabrice Tourre, the Goldman Sachs employee at the centre of the SEC's investigations into the bank's subprime-shorting CDOs, is going to appear (along with his boss Lloyd Blankfein)... (more...)
Senate Panel Approves Derivatives Bill - Wall Street Journal
The Senate Agriculture Committee approved a bill largely along party lines that would bring new regulations to over-the-counter derivatives. The bill received one Republican vote from Sen. Charles Grassley of Iowa. (more...)
Rifts Imperil Overhaul of Global Banking Rules - Wall Street Journal
The global response to the financial crisis has given way to bickering, imperiling hopes that governments around the world can come up with a fix for outdated international-banking rules. (more...)
Blackstone Joins Extended Stay Bid - Wall Street Journal
Blackstone Group is joining an investor group led by Centerbridge Partners and Paulson & Co. to make a $905 million bid for Extended Stay and take the hotel chain out of bankruptcy-court protection. (more...)
Car Makers Stabilize Year After Bailouts - Wall Street Journal
Nearly a year after two big U.S. auto makers were bailed out by government-engineered bankruptcies, both offered tentative signs of a turnaround, with General Motors Co. repaying $6.7 billion to the U.S. government ahead of schedule and Chrysler Group LLC reporting a first-quarter operating profit and boosting its cash reserves. (more...)
Regional Banks Bemoan Lack of Lending - Wall Street Journal
At Wells Fargo, interest income, which is mostly the spread banks earn on making loans, declined 7.6% from a year earlier, to $13.2 billion. (more...)
High-yield issuance costs leap - Creditflux
The cost for issuing sub investment-grade debt rose for the first time in April yesterday, according to Bloomberg. The average interest rate for issuing high-yield bonds rose to 8.337% from 8.291% on April 16, according to Bank of America-Merrill Lynch US High Yield Master II index. The KDP high yield… (more...)
Fuld Claims Was In Dark About Repo 105 Accounting Device - Wall Street & Technology
Richard Fuld, Lehman Brothers' former chief executive, said he only learned of Lehman's use of a controversial accounting technique a year after the investment bank filed for bankruptcy in September 2008. (more...)
Friends of the bankers (not) - Financial Times
Among the scores of responses to the Basel Committee’s call for comments its proposals to strengthen the resilience of the banking sector, one stands out – a submission... (more...)
Parsons Sees Growth for Citi - Wall Street Journal
Citigroup Chairman Richard Parsons told shareholders at the bank's annual meeting to expect continued earnings growth. The Treasury voted to support a reverse stock split. (more...)
IMF Warns of 'New Phase' in Crisis - Wall Street Journal
In its semiannual Global Financial Stability Report, the International Monetary Fund said banks' losses world-wide wouldn't be as high as it previously estimated, but said Greece's upheaval may mark the start of escalating concerns about sovereign debt. (more...)
SEC Weighs Rules on Bank Debt - Wall Street Journal
The SEC is considering new rules that would prevent large banks from masking the risks they take by temporarily lowering their debt levels before quarterly reports. (more...)
India's Central Bank Raises Rates - Wall Street Journal
India's central bank--in a clear sign of its growing intolerance with high inflation--raised its key borrowing and lending rates by 0.25%. (more...)
Alleged HFT Code Theft Brings Charges Against Ex-SocGen Trader - Wall Street & Technology
U.S. prosecutors charged a former Societe Generale trader on Monday with theft of a computer code used in high-frequency proprietary trading in the bank's New York office. (more...)
U.S. Charges Ex-SocGen Man Over HFT Code Theft - Advanced Trading
U.S. prosecutors charged a former Societe Generale trader on Monday with theft of a computer code used in high-frequency proprietary trading in the bank's New York office. (more...)
The non-performing pain in Spain goes on, and on - Financial Times
The Bank of Spain released the February data for Spanish banks’ non-performing loans on Monday, and the details aren’t pretty.Like much else in the wreckage of Spain’s... (more...)
Basel letters page (updated) - Financial Times
The Basel Committee of Banking Supervisors has released the feedback it received on the proposed reforms to capital and liquidity frameworks — or Basel III as they are more commonly known.... (more...)
Lawmakers Blast Lehman, Regulators - Wall Street Journal
Lawmakers took aim at Lehman Brothers and federal regulators for the investment bank's collapse, accusing the firm of manipulation and its watchdogs of negligence. (more...)
J.P. Morgan Taps Ben in China - Wall Street Journal
J.P. Morgan Chase hired Ben Shenglin from HSBC Holdings to head its corporate banking business in China. (more...)
'Tide Is Turning,' Citi Tells Investors - Wall Street Journal
Citi told shareholders the "tide is turning" after the bank's near-collapse, in a meeting that was a marked contrast to last year's heated affair. (more...)
IMF Backs New Global Tax on Banks - Wall Street Journal
The IMF advised the G-20 nations to enact taxes on the balance sheets, profits and compensation of financial institutions to pay for the cost of shutting troubled financial firms in the event of another financial crisis. (more...)
Défãult rísk – again - Financial Times
Remember January 15? That was the day Greece's CDS curve inverted. And February 9 was the day Portugal's CDS curve inverted. An inverted CDS curve basically indicates that the... (more...)
Goldman Sachs Q1 EPS beats forecasts at $5.59 - Financial Times
Goldman Sachs shares rose 1.4 per cent in pre-market trade in New York after the bank reported Q1 earnings per share of $5.59. The figure beat the Reuters consensus forecast of $4.01.... (more...)
J.P. Morgan Names China Corporate-Banking Boss - Wall Street Journal
J.P. Morgan Chase hired Ben Shenglin from HSBC Holdings to head its corporate banking business in China. (more...)
Natixis Mulls Selling Private-Equity Activities - Wall Street Journal
French bank Natixis said it had reached a preliminary agreement to sell some of its private-equity activities to French insurer AXA's private-equity unit. (more...)
Fuld: SEC, Fed Knew All - Wall Street Journal
Former Lehman CEO Richard S. Fuld Jr. plans to tell lawmakers that regulators knew everything that was going on inside Lehman "in real time" as it neared bankruptcy, an allegation that will pit him against others testifying. (more...)
The module is designed to support stringent requirements in pricing and publishing for secondary market making and gives traders the capability to be active across a wide range of instruments such as equity and credit linked notes, convertible bonds, warrants and cross-asset structured products. (more...)
Banks Post Stronger Results - Wall Street Journal
Bank of New York said its earnings jumped 74% on improved fee revenue and investment gains, while U.S. Bancorp's profit rose and its credit-loss provisions fell. (more...)
NAB Doesn't Back Down on AXA Deal - Wall Street Journal
National Australia Bank said it is pursuing all options in its proposed takeover of AXA Asia Pacific Holdings after Australia's competition regulator blocked the deal a day earlier over concerns that NAB referred to as 'incorrect.' (more...)
Lawmakers Seize on Lehman's Failings - Wall Street Journal
Lawmakers took aim at Lehman Brothers and federal regulators for the investment bank's collapse, accusing the firm of manipulation and its watchdogs of negligence. (more...)
A Cautious India Raises Rates - Wall Street Journal
India's central bank--in a clear sign of its growing intolerance with high inflation--raised its key borrowing and lending rates by 0.25%. (more...)
[Abacus] Der Abakus - Financial Times
Alternate title: How Mitteleuropa led to the creation of the Abacus CDOs.The German bank IKB, together with ACA, was one of the investors in Abacus 2007-ACI, the subprime-referencing... (more...)
What the Fed’s boringness begot - Financial Times
Last week the analysts at Deutsche Bank blamed the erstwhile boringness of central bank policy -- or at least its predictability -- for fueling the financial crisis. Mortgage expert... (more...)
Tech Firms Bulk Up With Debt - Wall Street Journal
SAP and Adobe are among technology companies turning to debt to raise capital, taking advantage of the thawing credit markets to build their war chests in anticipation of a wave of dealmaking. (more...)
Totting up a Greek Götterdämmerung - Financial Times
A billion here, a billion there, and soon you're talking real money, as a US Senator once (possibly) said. For Bundesbanker Axel Weber, however, you're mostly talking a giant headache,... (more...)
Basel letters page - Financial Times
The Basel Committee of Banking Supervisors has released the feedback it received on the proposed reforms to capital and liquidity frameworks — or Basel III as they are more commonly known.... (more...)
Upper tier two hybrids could have scarcity value, says RBC - Creditflux
RBC Capital Markets says that upper tier two securities could offer good value relative to other bank hybrid capital securities. In a research comment published on Friday, the bank says that the latest Basel Committee consultation document on bank capital could lead issuers to call their upper tier two bonds… (more...)
[Abacus] The experience of Laura Schwartz - Financial Times
Laura Schwartz is a name that appears in Goldman Sachs’ defence documents — the bank’s counter-arguments against the SEC’s allegations of civil fraud in... (more...)
Goldman effect drives up monolines - Creditflux
Credit traders are bidding up monoline insurers in the wake of the SEC’s fraud case against Goldman Sachs (more...)
$50 Billion Fund Has Tortured History - Wall Street Journal
A fund to break up failing companies is at the core of one of the most central questions facing the government in the aftermath of the financial crisis: How should the government be armed to protect taxpayers if big banks start to topple again? (more...)
Portfolio managers turn bullish on default rates, finds IACPM - Creditflux
Loan portfolio managers at banks have become increasingly bullish on credit fundamentals, according to the most recent quarterly survey of members of the International Association of Credit Portfolio Managers. But while most of those surveyed (68%) expected default rates to fall in the next 12 months, views were more evenly… (more...)
Goldman responds to CDO fraud charges - Creditflux
Goldman Sachs issued a response on Friday to the SEC’s fraud accusations (see SEC charges Goldman with fraud over CDO ). The bank says the charges are unfounded and adds that it lost $90 million through its own long position in the Abacus 2007-AC1 transaction. This loss was significantly greater… (more...)
[Abacus] A CDO litigation risk league table - Financial Times
Interesting table from Dan Davies at Credit Suisse, who checked the Dealogic database to see who acted as lead underwriter on deals similar to Goldman’s Abacus 2007-AC1.... (more...)
Dems Step Up Efforts on Financial Bill - Wall Street Journal
Dodd is optimistic lawmakers will move forward with legislation overhauling financial markets as the Obama administration and congressional Democrats seek to build support ahead of a vote. (more...)
Fitch Warns on Shell Rating - Wall Street Journal
Fitch revised its outlook for Shell's credit rating to negative from stable, citing doubts that the company's medium-term cash flow will be strong enough to maintain its current rating. (more...)
Banks Drive Stock Rebound - Wall Street Journal
The Dow rose 73.39 points as financial stocks bounced back from Friday's drop. Citigroup shares rose 7% and accounted for about a quarter of NYSE volume. (more...)
Credaris fund and team move to Cairn - Creditflux
London-based credit manager Cairn Capital has announced that it is taking over management of the Credaris Credit Fund along with the team that manages the long-short European credit fund. The fund’s principal portfolio manager Sam Cowan is rejoining Cairn, where he used to work, from Credaris, which is also based… (more...)
CDS report: Banks and airlines drag market down - Financial Times
Financials took over from sovereigns as the negative catalyst du jour, pushing spreads wider across the board. The bearish sentiment triggered on Friday afternoon by news that... (more...)
Citigroup surprises with Q1 net income of $4.4bn - Financial Times
Citigroup shares rose 3.3 per cent in pre-market trade in New York on Monday after the bank reported a Q1 net income of $4.4bn. Profit from continuing operations came in at 14 cents per share.... (more...)
Citi Posts $4.4 Billion Profit - Wall Street Journal
Citigroup reported a first-quarter profit of $4.4 billion and said the fallout from the financial crisis and the bank's massive strategic repositioning is settling. (more...)
BofA Says the Worst Has Passed - Wall Street Journal
Bank of America saw a surge in investment-banking revenue that helped it beat Wall Street earnings forecasts. (more...)
[Abacus] Fabrice Tourre scores an indefinite paid holiday - Financial Times
Fabrice “Fabulous Fab” Tourre, the Goldman Sachs employee at the epicentre of the SEC’s allegations against the former investment bank, has gone on holiday. Indefinitely.... (more...)
Greece Needs More Aid, Official Says - Wall Street Journal
Greece may require financial assistance of as much as €80 billion ($107.92 billion) to avoid default, Bundesbank President Axel Weber told a small group of German lawmakers Monday. (more...)
Fuld: Valukas 'Distorted Facts' - Wall Street Journal
Lehman's former CEO said he wasn't aware of questionable repurchase agreements undertaken by the bank until a year after it filed for bankruptcy. (more...)
Tech Firms Bulk Up With Debt - Wall Street Journal
SAP and Adobe are among technology companies turning to debt to raise capital, taking advantage of the thawing credit markets to build their war chests in anticipation of a wave of dealmaking. (more...)
Fuld: SEC, Fed Knew All - Wall Street Journal
Former Lehman CEO Richard S. Fuld Jr. plans to tell lawmakers that regulators knew everything that was going on inside Lehman "in real time" as it neared bankruptcy, an allegation that will pit him against others testifying. (more...)
Goldman headlines put brakes on credit rally - Creditflux
News of the SEC’s legal action against Goldman Sachs, see SEC charges Goldman with fraud over CDO, sent the bank’s spreads sharply wider (more...)
Short unwinds drive dramatic moves in CMBX - Creditflux
Some of the most dramatic moves in the credit market last week were in the CMBX index, which references tranches of commercial mortgage-backed securities (more...)
Markit delays new index launch - Creditflux
The launch of a new credit derivative index has been put back by a week (more...)
[Abacus] The analysts react - Financial Times
The SEC's complaint against Goldman Sachs, alleging the bank misled investors on a 2007 subprime synthetic CDO deal, caused a 12 per cent drop in the company's share price on Friday.... (more...)
Australia Rejects NAB's AXA Bid - Wall Street Journal
Australia's competition watchdog said it will oppose National Australia Bank's $12.3 billion Axa Asia Pacific bid. (more...)
Short View: CDOs appear in a new guise - Financial Times
Bonds backed by a pool of loans - a rebranded version of CDOs – are being sold to investors by several banks (more...)
Greek Debt Crisis Seen Getting Worse - Wall Street Journal
Greece may require financial assistance of as much as €80 billion ($107.92 billion) to avoid default, Bundesbank President Axel Weber told a small group of German lawmakers Monday. (more...)
EU Cautious Over Bank Levy - Wall Street Journal
A broad consensus is forming among the bloc's finance ministers and central bankers as they seek ways to better regulate the financial sector. (more...)
Canada Firm Acquires Three Failed U.S. Banks - Wall Street Journal
Canada's TD Bank Financial Group gobbled up operations of three failed institutions in Florida. Regulators seized a total of eight banks, marking 50 so far this year that have failed. (more...)
Judge Bashes Bank in Foreclosure Case - Wall Street Journal
A Florida state-court judge, in a rare ruling, said a major national bank perpetrated a "fraud" in a foreclosure lawsuit, raising questions about how banks are attempting to claim homes from borrowers in default. (more...)
$50 Billion Fund Has a Tortured History - Wall Street Journal
A fund to break up failing companies is at the core of one of the most central questions facing the government in the aftermath of the financial crisis: How should the government be armed to protect taxpayers if big banks start to topple again? (more...)
EU Treads Cautiously on Bank Levy - Wall Street Journal
A broad consensus is forming among the bloc's finance ministers and central bankers as they seek ways to better regulate the financial sector. (more...)
Goldman Case Inflames Fight Over Regulation - Wall Street Journal
The government's civil-fraud charges against Goldman Sachs dominated Washington's debate over new financial-market rules, handing Democrats a powerful tool to press their case for stricter curbs on Wall Street's big banks. (more...)
[Abacus] The case involving ABACUS 2007-AC1 - Financial Times
Read the SEC’s case against Goldman Sachs and their french credit trader Fabrice Tourre here.In summary, the SEC alleges, in a civil suit, that Goldman knowingly puffed... (more...)
Judge Bashes Bank in Foreclosure Case - Wall Street Journal
A Florida state-court judge, in a rare ruling, said a major national bank perpetrated a "fraud" in a foreclosure lawsuit, raising questions about how banks are attempting to claim homes from borrowers in default. (more...)
Listed credit fund puts in strong monthly performance - Creditflux
A structured credit investment vehicle put in a 6% rise in net asset value in March, after marking up assets across its portfolio (more...)
Breaking pre-market news on Friday,- Bank of Ireland says expects to dispose of asset management arm as part of EU restructuring arm - statement.- Thomas Cook issues €400m,... (more...)
Traders put on new shorts as high yield rally continues - Creditflux
Investors are starting to put on new short positions on high yield credit indices again, say traders, seeing the new highs of the last two days as a good entry point for bearish trades (more...)
Acquisition rumour drives hospital credit wider - Creditflux
Credit default swaps on US hospital operator Universal Health Services widened by some 25 basis points in trading this morning in New York (more...)
Pulling the plug on China’s banks. Literally. - Financial Times
Here's one way to put the brakes on China's lending boom, FT Alphaville observes -- turn off the lights. Bank lenders have had their loan application screens switched off by their... (more...)
Further reading - Financial Times
Elsewhere on Friday,- Greek default: ‘too grisly to contemplate’.- Meanwhile, in Portugal…- And in Japan…- More on the CME’s dodgy Lehman auction.... (more...)
Bank of America Profit Falls - Wall Street Journal
Bank of America's profit fell 25%, beating expectations, as credit-loss provisions declined. Its credit-card business swung to a profit, while its mortgage unit was the only segment to post a loss. (more...)
Universal Health Services acquisition rumour drives credit wider - Creditflux
Credit default swaps on US hospital operator Universal Health Services widened by some 25 basis points in trading this morning in New York on rumours that the company is planning to buy specialist operator Psychiatric Solutions. Universal Health Services’ chief financial officer did not respond to requests to comment on… (more...)
BAC gains on Merrill’s deterioration in Q1 - Financial Times
Here at FT Alphaville, we do like to cover the effects of gains and losses stemming from changes in banks’ own debt quality.These, as we’ve written before, are known as CVAs:... (more...)
Bank earning season goes on — BofA’s turn - Financial Times
Bank of America has released its Q1 2010 results, hot on the heels of JP Morgan earlier this week. But, is the news as positive as Jamie Dimon’s?On first sight, it has... (more...)
60% of CDSs Could Clear Centrally, Say Experts - Wall Street & Technology
Around 60 percent of the $24.8 trillion credit derivatives market can rapidly move to central clearing and reduce systemic risk, but moving much beyond that could be counterproductive, according to market experts. (more...)
Around 60% CDS Could Clear Centrally Say Experts - Advanced Trading
Around 60 percent of the $24.8 trillion credit derivatives market can rapidly move to central clearing and reduce systemic risk, but moving much beyond that could be counterproductive, according to market experts. (more...)
Euro-Zone Inflation Lower Than First Estimated - Wall Street Journal
Consumer prices in the 16 countries that use the euro rose at a slightly slower rate over the 12 months to March than first estimated, and the annual rate of inflation remained well below the European Central bank's target. (more...)
The case involving ABACUS 2007-AC1 - Financial Times
Read the SEC’s case against Goldman Sachs and their french credit trader Fabrice Tourre here.In summary, the SEC alleges, in a civil suit, that Goldman knowingly puffed... (more...)
Wall Street Work Force Falls to 16-Year Low - Wall Street & Technology
Wall Street continues to shed jobs. In March the Street shed 1,200 jobs, in a third straight month of job cuts that pushed employment in New York City's key banking and investment industry to its lowest level since October 1993. (more...)
Investment Banking Carries BofA - Wall Street Journal
Bank of America saw a surge in investment-banking revenue that helped it beat Wall Street earnings forecast, though results still trailed those of a year ago. (more...)
Geithner Won't Call for Derivatives Ban - Wall Street Journal
Treasury Secretary Timothy Geithner said in a letter that tight restrictions on derivatives is "at the core" of a sweeping overhaul of financial rules but didn't call for the outright ban on trading by banks that some Democrats are pushing. (more...)
Senate Derivatives Bill Takes Aim at Wall Street - Wall Street Journal
Senate Agriculture Committee Chairman Blanche Lincoln unveiled a proposal that would give federal regulators broad new authority to require mandatory trading and clearing of standardized derivatives. (more...)
BofA Says the Worst Has Past - Wall Street Journal
Bank of America saw a surge in investment-banking revenue that helped it beat Wall Street earnings forecasts. (more...)
Dorfman to Join Securities-Industry Group - Wall Street Journal
Richard Dorfman, who resigned as chief executive officer of the Federal Home Loan Bank of Atlanta, will take a senior position at the Securities Industry and Financial Markets Associaton. (more...)
Canada Firm Buys Three Failed U.S. Banks - Wall Street Journal
Canada's TD Bank Financial Group, accelerating its march on the U.S. banking industry, gobbled up operations of three failed institutions in Florida. Regulators also seized two small banks in Michigan and Massachusetts, the first bank failures of the year in those two states. (more...)
Paulson Found a Partner in Goldman - Wall Street Journal
When Paulson & Co. wanted to go short on mortgages, some banks weren't willing to work with a bearish client. Goldman was. Now it's facing civil fraud charges. (more...)
Canada Firm Acquires Three Failed U.S. Banks - Wall Street Journal
Canada's TD Bank Financial Group gobbled up operations of three failed institutions in Florida. Regulators seized a total of eight banks, marking 50 so far this year that have failed. (more...)
BofA Says the Worst Has Passed - Wall Street Journal
Bank of America saw a surge in investment-banking revenue that helped it beat Wall Street earnings forecasts. (more...)
Spreading Around the WaMu Blame - Wall Street Journal
A turf war between federal regulators allowed Washington Mutual to ramp up risky lending and likely worsened the biggest bank failure in U.S. history, an investigation by a Senate panel concluded. (more...)
Factory Output Surged 0.9% Last Month - Wall Street Journal
U.S. manufacturing output surged in March as factories continued to lead the economic recovery, while a key gauge of housing-sector sentiment benefited from a federal tax credit due to expire this month. (more...)
Charges Hit Bank Clients Over Taxes in the U.S. - Wall Street Journal
Nine individuals were charged criminally as authorities widened their investigations of U.S. taxpayers concealing funds through overseas accounts and companies. (more...)
Chinese consumer credit binge begins - Financial Times
We’ve just seen Chinese GDP rise 11.9 per cent in Q1.And urban house prices increased 11.7 per cent in March.And retail sales are up 17 per cent.So here’s another... (more...)
Banks Turn the Corner: J.P. Morgan Profit Surges 55% - Wall Street Journal
J.P. Morgan Chase reported unexpectedly strong earnings, increasing optimism among investors that U.S. banks are rebounding from the crisis that battered the industry. (more...)
Banks Turn the Corner - Wall Street Journal
J.P. Morgan Chase reported unexpectedly strong earnings, increasing optimism among investors that U.S. banks are rebounding from the crisis that battered the industry. (more...)
JPMorgan Bankers Could See Familiar Pay in 2010 - Wall Street & Technology
If the amount JPMorgan Chase set aside for pay in the first quarter is any indication, its investment bankers might see bonuses this year that look a lot like what they got in 2009. (more...)
JPMorgan Lowers Commodities Risk, May Set Trend - Wall Street & Technology
JPMorgan Chase cut back on commodity trading risks for a second straight quarter despite rebounding prices of raw materials, and other Wall Street banks could follow such caution, analysts said. (more...)
$48.6 Billion Recouped in Lehman Assets - Wall Street Journal
Lehman Brothers' European administrator said it has gained control of $48.6 billion of securities and cash and returned $14.3 billion of assets to clients in the 18 months since the U.S. investment bank collapsed. (more...)
Managing OTC Derivatives: Never Waste a Good Crisis - Wall Street & Technology
OTC derivatives didn't cause the financial crisis, but they certainly played a part. However, OTC derivatives may end up being the scapegoat while other larger risks are overlooked. (more...)
Lehman Examiner Full Report Adds Pieces to Bankruptcy Puzzle - Wall Street & Technology
From accounting gimmicks to flummoxed risk managers, newly released documents, gathered by the court-appointed examiner of Lehman Brothers shed fresh light on some of the factors that propelled the bank to bankruptcy. (more...)
The (alleged) minus $50bn man - Financial Times
His name is Alberto Cribiore. He’s a former private equity practitioner and he sat on the board of Merrill Lynch before it was sold to Bank of America.According to a Fortune... (more...)
China Avoids Rate Increase - Wall Street Journal
China has raised down-payment requirements for certain home buyers after announcing that economic growth in the first quarter surged to 11.9% from a year earlier. (more...)
Charges Hit Bank Clients Over Taxes In the U.S. - Wall Street Journal
Nine individuals were charged criminally as authorities widened their investigations of U.S. taxpayers concealing funds through overseas accounts and companies. (more...)
BofA Merrill markets Symphony CLO, reports Bloomberg - Creditflux
Bloomberg reports that Bank of America is in the market with a $500 million CLO to be managed by Symphony Asset Management. The deal will consist of a $317 million senior piece and a $113 million tranche rated Ba2 by Moody’s, according to the article. (more...)
Obama fails to soften derivatives reform opposition - Financial Times
Barack Obama, president, met Republican leaders to discuss financial regulatory reform but the meeting did nothing to improve the tone of an increasingly bitter debate (more...)
High yield indices touch new highs amid active trading - Creditflux
US high yield cash bonds remained in high demand yesterday in a day of active trading, with high yield credit derivative indices touching record highs for the year (more...)
The end of the euro - Financial Times
What’s in the water at Morgan Stanley? Its credit and equity strategists are negative on the market and now the bank’s economists are talking about the break up of the euro.... (more...)
[Ireland's Bad Bank] Operatic structured finance - Financial Times
Like the plot-line of a tragic libretto, Opera Finance CMH ’s good fortune has taken a sudden turn for the worse.Cue the ballad.Opera CMH is one of the few commercial... (more...)
The Greek debt merry-go-round goes round again - Financial Times
Here we go again, FT Alphaville says -- the 10-year yield spread between Greek bonds and German bunds neared an 11-year high on Thursday, while Greek CDS also spiked. Fears for... (more...)
Setback for reforms to US derivatives market - Financial Times
US efforts to finalise landmark reform of the vast over-the-counter derivatives suffered a setback after a key Republican senator accused Tim Geithner, Treasury secretary, and the top US futures regulator of politicising the process (more...)
Further reading - Financial Times
Elsewhere on Wednesday,- The case for a Greek strategic default.- Hypselotimophobes anonymous.- A ‘domestic IMF’ for troubled US munis.- US bank reforms: a... (more...)
The slow death of the cajas - Financial Times
Ah, cajas de ahorros! The pain (in Spain) never seems to end for the country’s unlisted savings banks.We’ve already noted how BBVA and Santander have started a race... (more...)
UBS Bonus Plan Narrowly Passes - Wall Street Journal
received a strong signal from shareholders, nearly 40% of whom opposed the Swiss bank's bonus plan for 2009 as another controversial vote on absolving former management still looms. (more...)
Judge reveals who took on Lehman book - Financial Times
Goldman Sachs, Barclays and DRW Trading of Chicago took over the US futures and options trades of Lehman Brothers after the investment bank's 2008 bankruptcy, it was revealed (more...)
Musings on mortgage modification-obfuscation - Financial Times
Here’s something to ponder ahead of the US bank earning season.Mortgage modifications — that is, changes to the terms of home loans — have been running rampant just as banks’... (more...)
Greek spreads move back to pre-bail-out highs - Creditflux
Greek sovereign credit default swap spreads have moved back out to their wides of last week as investor enthusiasm about the country’s mooted bail-out has waned (more...)
BofA to Name Outsider as CFO - Wall Street Journal
Charles Noski, formerly at Northrup Grumman and AT&T, is expected to be named chief financial officer of Bank of America as it prepares for more regulation. (more...)
Singapore Adjusts for Sharp Recovery - Wall Street Journal
Singapore's central bank tightened monetary policy Wednesday to stem inflationary pressures that have grown with the island's sharp recovery from last year's slump. (more...)
Simon Offers to Recapitalize General Growth - Wall Street Journal
Simon Property Group altered its pursuit of bankrupt rival General Growth, offered to match a competing offer to recapitalize General Growth minus a key deal sweetener. (more...)
EuroCCP Introduces Clearing Service for U.S. Equity Issues - Advanced Trading
European trading firms can trade U.S. securities on various Pan-European platforms during the day and settle those trades at DTC. (more...)
Fear me, for I am a liquidity-giving economy - Financial Times
In addition to weighing surcharges for too-big-too-fail banks, the latest edition of the IMF’s Global Financial Stability Report, has an interesting chapter on the 2007-2009... (more...)
Credit traders seize on Dixons as the next Mirant - Creditflux
M&A remained the big story in corporate credit yesterday (more...)
And the US bank earning season begins… - Financial Times
…with a big earnings beat from JP Morgan.Via Reuters:- JPMORGAN REPORTS FIRST-QUARTER 2010 NET INCOME OF $3.3BILLION, OR $0.74PER SHARE, ON REVENUE1 OF $28.2BILLION... (more...)
A different kind of bank repurchase - Financial Times
Call it poetic justice. Or perhaps, credit comeuppance.The ghosts of sketchy mortgage loans are coming back to haunt the banks that created them — in the form of a wave of... (more...)
Regulator tells Swiss banks to issue cocos, reports Financial Times - Creditflux
The Financial Times reports that UBS and Credit Suisse are looking at issuing contingent capital bonds, despite being regarded as some of the world’s best capitalised banks. According to the article, the duo are being prodded by the Swiss regulator to look into issuing bonds which convert into equity if… (more...)
Fitch downgrades a batch of CSOs - Creditflux
Fitch has announced that it is downgrading 99 CSOs globally and upgrading four tranches. It says the downgrades reflect the total of 14 credit events that have hit these deals since it last took action on them in May, as well the deterioration of other names in the reference portfolios.… (more...)
Lehman’s alter ego – or was it? - Financial Times
Thank heavens for Lehman's Repo 105, FT Alphaville says -- for finally prompting official investigations to how Wall Street banks have dealt with risk on their balance sheets.... (more...)
Historic moments in Chinese banking - Financial Times
Are you a Chinese politician looking for ideas to pare back your country’s lending boom?Well, look no further! According to a new NBER paper, your own history —... (more...)
Banks Fight to Block Derivatives Rules - Wall Street Journal
Senate Democrats, resisting a last-ditch lobbying push from big Wall Street firms, are moving toward a sweeping revamp of financial regulation that would squeeze banks' lucrative derivatives-trading business. (more...)
J.P. Morgan Profit Jumps - Wall Street Journal
J.P. Morgan Chase's earnings rose 55% as strong trading revenue helped the bank offset continuing losses on consumer loans. (more...)
UBS Defends Pay Policies - Wall Street Journal
UBS Chairman Kaspar Villiger defended the bank's remuneration policies, but also said that he expects bonus payments in the banking industry to come down eventually. (more...)
Treasury Moves to Protect Benefits - Wall Street Journal
The Treasury Department is releasing new rules preventing banks from seizing Social Security and other federal benefits from customers facing debt collectors. (more...)
BofA Names Outsider as CFO - Wall Street Journal
Charles Noski, formerly at Northrop Grumman and AT&T, was named chief financial officer of Bank of America as it prepares for more regulation. (more...)
Ex-WaMu CEO Blames 'Club' - Wall Street Journal
Former Washington Mutual Chief Executive Killinger defended the collapsed bank's actions and said it shouldn't have been seized by regulators in 2008. (more...)
Shinsei Set for $1 Billion Loss - Wall Street Journal
Shinsei is set to report a net loss of more than $1.07 billion for the year ended March due to higher loan provisions, highlighting the difficulties faced by the bank as it tries to push through a merger with Aozora Bank. (more...)
Northern Rock Officials Fined - Wall Street Journal
The U.K.'s Financial Services Authority penalized two former senior executives at nationalized British lender Northern Rock for misreporting the bank's financial data. It is the latest in a flurry of assaults by the regulator on alleged market misconduct. (more...)
LBO repricing is overdone, says Barcap - Creditflux
Barclays Capital says the recent repricing of LBO candidate credits seems overdone. In its latest US Credit Alpha report, the bank picks out 15 US investment grade credits that have widened 25% compared to the CDX in the past four weeks. It says that for most of these names, such… (more...)
Bank of China sells additional $900 million of tier-two notes - Creditflux
Bank of China today issued a $900 million tap of tier-two subordinated notes, taking its total sale of tier-two notes to $2.5 billion. The notes carry a coupon of 5.55%, and mature in 2020. In addition, Bank of China is expected to sell up to CNY40 billion ($5.9 billion) in… (more...)
Derivatives trading - Financial Times
The financial crisis has produced plenty of knee-jerk regulatory proposals, but the French finance minister's idea that the EU should set up its own CFTC is one worth listening to (more...)
23,000 words on derivatives reform - Financial Times
Oh goodness, Republican Senator Judd Gregg has his work cut out in mastering the intellectual debate on fixing the derivatives trade.Here’s a long and detailed paper entitled:... (more...)
Obama defends derivatives crackdown - Financial Times
Barack Obama called for strong oversight of the US derivatives market as leading Republicans dismissed his regulatory reform proposals as a guarantee of further Wall Street bail-outs (more...)
CME, Lehman Book Bidders Likely Protected - Wall Street Journal
The Lehman examiner said Wall Street firms are likely to be protected from lawsuits seeking to recoup losses associated with the auction of the failed bank's futures book. (more...)
Banks Turn the Corner: J.P. Morgan Profit Surges 55% - Wall Street Journal
J.P. Morgan Chase reported unexpectedly strong earnings, increasing optimism among investors that U.S. banks are rebounding from the crisis that battered the industry. (more...)
Evidence Mounts of Strong Recovery - Wall Street Journal
Shoppers turned up in surprising force at U.S. stores, auto dealers, restaurants and elsewhere in March, adding to a growing sense that the recovery could prove faster than anticipated. (more...)
J.P. Morgan Profit Surges 55% - Wall Street Journal
J.P. Morgan Chase reported unexpectedly strong earnings, increasing optimism among investors that U.S. banks are rebounding from the crisis that battered the industry. (more...)
UNX Adds Access to Knight's E-trading Services, Algos - Advanced Trading
UNX has upgraded access to Knight Direct’s electronic trading services, a move that will allow clients to use Knight’s full array of algorithmic trading and smart order routing strategies. (more...)
The derivatives ding-dong waiting in the Dodd bill - Financial Times
Looks like the flagship of US financial reform won’t have plain sailing after all.Tuesday brought an odd bit of shadow-boxing over where to park derivatives trading in the post-Lehman age.... (more...)
Unicredit's Board Approves Compromise Plan - Wall Street Journal
Unicredit's board approved plans to revamp its operations in a compromise move aimed at ending a dispute between CEO Alessandro Profumo and some of the Italian bank's key shareholders. (more...)
NYSE Taps Head of Clearing Unit - Wall Street Journal
NYSE Euronext named Walter Lukken, the former head of the CFTC, to run the new clearing venture spearheading the company's expansion in the U.S. derivatives sector. (more...)
Hurdle Emerges to Financial Revamp - Wall Street Journal
White House officials have raised objections to a potential compromise between Democrats and Republicans on the Senate Agriculture Committee regarding rules governing derivatives trading. (more...)
Treasury Moves to Protect Federal Benefits - Wall Street Journal
The Treasury Department is releasing new rules preventing banks from seizing Social Security and other federal benefits from customers facing debt collectors. (more...)
Ex-WaMu CEO Blames the 'Club' - Wall Street Journal
Former Washington Mutual Chief Executive Killinger defended the collapsed bank's actions and said it shouldn't have been seized by regulators in 2008. (more...)
Banks Fight to Block Rules - Wall Street Journal
Senate Democrats, resisting a last-ditch lobbying push from big Wall Street firms, are moving toward a sweeping revamp of financial regulation that would squeeze banks' lucrative derivatives-trading business. (more...)
Strapped City Cuts and Cuts - Wall Street Journal
Colorado Springs has embarked on a grand experiment: It is trying to get volunteers and the private sector to provide services the city can no longer afford. (more...)
Details Scarce on WaMu Failure - Wall Street Journal
More than 18 months after the largest bank failure in U.S. history, regulators have disclosed few details about their handling of Washington Mutual's collapse. (more...)
Big Banks Rebel on Mortgage Plan - Wall Street Journal
Some big U.S. banks, like Bank of America and J.P. Morgan Chase, are pushing back against the idea that they should slash mortgage balances for millions of troubled borrowers. (more...)
Iceland’s bank-berg, what lurked beneath (part I) - Financial Times
In a word — quite possibly insolvency.The full English version of the investigative report into Iceland’s banking collapse is not yet available on the special committee’s website,... (more...)
Mergers are back: credit traders bet on consolidation - Creditflux
The credit market yesterday hailed the return of strategic mergers and acquisitions following news of high yield companies Mirant and RR Energy agreeing to join up (more...)
Credit manager chalks up 18th consecutive positive month - Creditflux
The multi-strategy credit fund put in a strong performance in March, according to information sent to investors (more...)
Is BoJ-bashing about to inflate the world? - Financial Times
They’re at it again.The Democratic Party of Japan, Japan’s ruling party, had a few swift words for the nation’s central bank on Tuesday. A study group of DPJ... (more...)
BofA Merrill confirms credit sales hire - Creditflux
Bank of America Merrill Lynch has confirmed earlier reports that Gerry Walker will join the firm from Deutsche Bank. He is coming on board as co-head of credit sales for the Americas. He and his fellow co-head Steve Hollender report to overall fixed income sales head Bryan Weadock. (more...)
Standard Chartered hires former credit hedge fund manager - Creditflux
Standard Chartered has hired a former credit hedge fund portfolio manager as a director in its structured solutions group (more...)
The fight for deposits in Spain - Financial Times
FT Alphaville alerted readers on Tuesday to some of the factors raised in Iceland’s investigative report into the country’s banking collapse.Appendix 3: Iceland’s... (more...)
Iceland’s bank-berg, what lurked beneath (part II) - Financial Times
Continued from part I.In 2006, something very worrying for the Icelandic banking system took place.Analysts and ratings agencies began to issue notes such as the below:“The... (more...)
Further reading - Financial Times
Elsewhere on Tuesday,- More of Lehman’s creative business practices.- ‘The lessons of Magnetar are the basic lessons of the financial crisis’.- GWF Hegel versus Bank of America.... (more...)
ICG closes European recovery fund - Creditflux
Intermediate Capital Group has announced that it has closed its ICG Recovery Fund at €843 million. The London-based credit manager adds that its own co-investment takes the pool of capital it has to invest in credit recovery situations to €1.5 billion. The fund, which is already 30% invested, will invest… (more...)
WaMu Hearing Gets Under Way - Wall Street Journal
Regulators have disclosed few details about Washington Mutual's collapse more than a year after the largest bank failure in U.S. history. (more...)
FSA slams Northern Rock for misreporting mortgage arrears - Financial Times
The world’s toughest regulator just got even tougher.On Tuesday, the FSA announced it had banned the former deputy chief executive and the credit director of Northern Rock... (more...)
Former Northern Rock Executives Fined - Wall Street Journal
The U.K.'s Financial Services Authority penalized two former senior executives at nationalized British lender Northern Rock for misreporting the bank's financial data. (more...)
Comment, analysis and other offerings from Tuesday’s FT,Slawomir Skrzypek: Poland should not rush to sign up to the euroThe writer, late president of the National Bank of Poland,... (more...)
Small bank failures add to trups CDO loss tally, Fitch reports - Creditflux
The cumulative rate of defaults and deferrals in trups CDOs climbed by 1.6% to a combined 29.3% in March, according to a new report by Fitch. To date, 103 banks that are included in Fitch-rated trups CDOs have defaulted on these securities, while 330 are currently deferring. The biggest default… (more...)
Ex-WaMu CEO Defends Actions - Wall Street Journal
Former Washington Mutual Chief Executive Killinger defended the collapsed bank's actions and said it shouldn't have been seized by regulators in 2008. (more...)
NYSE Names Lukken to Head Clearing Unit - Wall Street Journal
NYSE Euronext tapped Walter Lukken, the former head of the CFTC, to run the new clearing venture spearheading the company's expansion in the U.S. derivatives sector. (more...)
Big, Risky Banks Face Higher Fees - Wall Street Journal
The largest U.S. banks could pay the government higher deposit-insurance fees under a proposal that federal regulators are considering to discourage risky behavior by big financial institutions. (more...)
Senate Probe: WaMu Ignored Warnings - Wall Street Journal
Officials at the failed banking operations of Washington Mutual securitized risky, fraudulent loans in the run-up to the financial crisis despite repeated internal warning signs. (more...)
Palm Is Exploring Options - Wall Street Journal
Palm has hired bankers to explore its options, including the sale of the company, as the smart phone maker has struggled to turn itself around. (more...)
Report Slams Iceland Over Collapse - Wall Street Journal
A report into Iceland's 2008 banking collapse has criticized the Nordic nation's former government and regulators for allowing the financial sector to become overheated without adequate restraint. (more...)
AIG, Goldman Unwind Soured Trades - Wall Street Journal
AIG realized a $1.5 billion to $2 billion loss last year to terminate the credit-default swaps insuring about $3 billion of mortgage-asset pools arranged by Goldman. (more...)
Beijing Gets Tough on Debt - Wall Street Journal
China has set a strict timetable for its banks to review local governments' off-the-books borrowing, the nation's top banking regulator said, in Beijing's latest step to clear up the murky legacy of last year's lending boom. (more...)
Structured credit specialist leaves CDPC - Creditflux
Structured credit specialist Jack Chen has started to offer independent consulting after resigning from credit derivative product company Centerline Financial (more...)
The DTA dodge - Financial Times
Are you a bank with a Deferred Tax Asset (DTA) problem?As you may be aware, regulators want to ban the use of DTAs, portions of which can currently be included in Tier 1, from... (more...)
European spreads drive inwards on Greece bailout news - Creditflux
Greece bonds and credit default swaps have continued to rally sharply today after terms for a €30 billion bailout for the sovereign were agreed by euro-zone finance ministers (more...)
Britain’s Labour party banks on, er, bank regulation - Financial Times
Labour — they’re the red ones, we think — published their manifesto to remain as the UK’s governing party on Monday, ahead of elections in May.And surprise,... (more...)
Index trading head jumps to another bank - Creditflux
A French bank has lost its credit index trading head (more...)
Boringness of central banks to blame for bubbles - Financial Times
As former Federal Reserve chairman Alan Greenspan argues that the pre-financial crisis bubble was the result of mortgage rates megabanks subprime expansion a global savings... (more...)
Bank Lending Slows in China - Wall Street Journal
Chinese banks scaled back their lending in March as Beijing sought to stem a flood of credit now that the economy is improving. (more...)
Changes rolled out for loan default swaps - Financial Times
Banks revamp the derivatives in an attempt to boost interest in a moribund part of the CDS market (more...)
AIG, Goldman Unwind Trades - Wall Street Journal
AIG realized a $1.5 billion to $2 billion loss last year to terminate the credit-default swaps insuring about $3 billion of mortgage-asset pools arranged by Goldman. (more...)
Big Banks Rebel on Mortgage Plan - Wall Street Journal
Some big U.S. banks, like Bank of America and J.P. Morgan Chase & Co., are pushing back against the idea that they should slash mortgage balances for millions of troubled borrowers. (more...)
Report on Iceland Blasts Ex-Officials - Wall Street Journal
A report on Iceland's 2008 banking collapse charges that the nation's former prime minister and its central-bank chief acted with "gross negligence" in failing to prevent the meltdown. (more...)
Details Scarce on WaMu Failure - Wall Street Journal
More than 18 months after the largest bank failure in U.S. history, regulators have disclosed few details about their handling of Washington Mutual's collapse. (more...)
Embattled Palm Seeks a Buyer - Wall Street Journal
Palm has hired bankers to explore its options, including the sale of the company, as the smart phone maker has struggled to turn itself around. (more...)
Hurdle Emerges to Financial Revamp - Wall Street Journal
White House officials have raised objections to a potential compromise between Democrats and Republicans on the Senate Agriculture Committee regarding rules governing derivatives trading. (more...)
Europe Bankrolls Greece - Wall Street Journal
Euro-zone finance ministers agreed that if heavily indebted Greece were to get a bailout, it could receive as much as €30 billion in loans this year at about 5% interest from fellow euro nations. (more...)
BofA Plans Japan Push - Wall Street Journal
Bank of America is pushing deeper into corporate-banking services in Japan, where it sees an opportunity to help companies expand, especially overseas. (more...)
Japan Bank Lending Falls - Wall Street Journal
Japanese bank lending in March fell at its sharpest pace since August 2005 after a steep increase in loans a year earlier and weak corporate demand for funds. (more...)
BOC Hong Kong Staff Charged - Wall Street Journal
The Hong Kong arm of Bank of China said two of its employees were charged by Hong Kong police over the sales of structured products linked to collapsed Lehman Brothers. (more...)
Europe Bankrolls Greece - Wall Street Journal
Euro-zone finance ministers agreed that if heavily indebted Greece were to get a bailout, it could receive as much as €30 billion in loans this year at about 5% interest from fellow euro nations. (more...)
Beijing Gets Tough on Debt - Wall Street Journal
China has set a strict timetable for its banks to review local governments' off-the-books borrowing, the nation's top banking regulator said, in Beijing's latest step to clear up the murky legacy of last year's lending boom. (more...)
Criminals Prey on the Unemployed - Wall Street Journal
The number of online laundering outfits that use unsuspecting job seekers to turn stolen credit-card numbers into cash is growing, experts say. (more...)
AIG, Goldman Unwind Soured Trades - Wall Street Journal
AIG realized a $1.5 billion to $2 billion loss last year to terminate the credit-default swaps insuring about $3 billion of mortgage-asset pools arranged by Goldman, people familiar with the matter said. (more...)
BofA Plans Japan Push - Wall Street Journal
Bank of America is pushing deeper into corporate-banking services in Japan, where it sees an opportunity to help companies expand, especially overseas. (more...)
Big Banks Mask Risk Levels - Wall Street Journal
Major banks masked their risk levels in the past five quarters by temporarily lowering their debt just before reporting it to the public, according to data from the New York Fed. (more...)
Breaking pre-market news on Friday,- Swedbank to leave state guarantee programme – statement.- Michael Page says to improve performance significantly in 2010 – statement.... (more...)
Big U.S. Banks Mask Risk Levels - Wall Street Journal
Major banks masked their risk levels in the past five quarters by temporarily lowering their debt just before reporting it to the public, according to data from the New York Fed. (more...)
Greek Bond Crisis Spreads - Wall Street Journal
Concern over a potential liquidity shortage at Greece's private-sector banks fueled a sharp selloff in Greek debt and equity markets. (more...)
Macarthur: Xstrata Approached Shareholder - Wall Street Journal
Macarthur Coal said an investment bank representing Swiss mining company Xstrata PLC has held talks with one of its biggest shareholders, adding to speculation that a bidding war for the miner could intensify. (more...)
Ex-Citigroup CEO Apologizes, Defends Bank's Size - Wall Street & Technology
Former Citigroup Inc Chief Executive Charles Prince apologized Thursday for Citi's failure to better prepare for the financial crisis, at the same time as he defended the third-largest U.S. bank's size and conglomerate nature. (more...)
Pricing Partners will provide independent revaluations to OFI Asset Management for its interest rates, credit and equity structured products. (more...)
Greece and French banks: pas de problème — d’accord? - Financial Times
Christian Noyer wishes to remind everyone: France’s banking system really isn’t that exposed to Greece.The Bank of France governor said on Friday that he had ‘no... (more...)
National bank of interventionski - Financial Times
A new European central bank turned to currency intervention this week.As the National Bank of Poland stated simply on its website on Friday:Narodowy Bank Polski w godzinach... (more...)
Credit Suisse CLO equity bond attracts high bids - Creditflux
A closely watched CLO equity bid list yesterday resulted in a large volume of trades, according to buy-side sources (more...)
Wall Street Leaves Pakistan - Wall Street Journal
Three Wall Street banks have abandoned their brokerage operations in Pakistan amid the nation's bleak economic situation. (more...)
Judge Dismisses Most Claims in Merrill-MBIA CDS Suit - Wall Street Journal
A state judge threw out a majority of the claims against Merrill Lynch in a lawsuit by MBIA over credit-default swaps. (more...)
Apollo and Sankaty bid for Stanfield CLOs, reports Bloomberg - Creditflux
Bloomberg reports that Apollo and Sankaty are in the running to buy Stanfield Capital’s CLOs which, as Creditflux first reported the manager is looking to sell. It adds that the sale is being arranged by Berkshire Capital Securities. Bloomberg reports that Apollo and Sankaty are in the running to buy… (more...)
Senior investors recovery 70% after CDO^2 liquidation - Creditflux
February’s liquidation of CDO of ABS Gennaker I CDO resulted in 70% recovery for senior noteholders, according to a ratings announcement today by Moody’s. The deal was created in 2005 by Solent Capital and invested in mainly senior notes from asset-backed securities and other CDOs. As Creditflux reported at the… (more...)
OTC Derivatives Market Still Lacks Transparency, Efficiency - Wall Street & Technology
Robust processes and better technology are needed to support the risk inherent in the market, according to findings of a survey carried out by TowerGroup and SunGard. (more...)
CDS trial shows how connected markets are - Financial Times
Regulators need to see the whole picture because information in one part of the market clearly has knock-on effects on others (more...)
CDS report: The moment of truth for Europe - Financial Times
There was a certain inevitability that a week marked by volatility should end with a session riddled with rumour and wild spread movements. And it was little surprise that Greece... (more...)
Myrtle Beach Bank Fails, Year's 42nd - Wall Street Journal
Beach First National Bank of Myrtle Beach, S.C., was closed making the bank the 42nd U.S. lender to fail this year and the first South Carolina failure in more than a decade. (more...)
Judge Dismisses Most Claims in CDS Suit - Wall Street Journal
A state judge threw out a majority of the claims against Merrill Lynch in a lawsuit by MBIA over credit-default swaps. (more...)
Bank Liquidity Fears Spark a Greek Selloff - Wall Street Journal
Concern over a potential liquidity shortage at Greece's private-sector banks fueled a sharp selloff in Greek debt and equity markets. (more...)
Citi's Prince 'Sorry' for Crisis Role - Wall Street Journal
Members of a panel investigating the U.S. financial crisis assailed former Treasury Secretary Robert Rubin and ex-Citigroup CEO Charles Prince for the bank's role, deriding their attempts to apologize. (more...)
Goldman Wants to Foreclose on Resort - Wall Street Journal
Goldman Sachs, which lent RQB Resort $193 million to help buy the Sawgrass resort in Florida, is urging a bankruptcy judge to let it foreclose on the property. (more...)
Greek Bond Crisis Spreads - Wall Street Journal
Concern over a potential liquidity shortage at Greece's private-sector banks fueled a sharp selloff in Greek debt and equity markets. (more...)
UBS Whistle-Blower Rues Tack - Wall Street Journal
Bradley Birkenfeld, the whistle-blower who helped expose widespread tax evasion in the Swiss banking industry, insists he would do it all over again. But, he would do it very differently. (more...)
Tribune Sets Plans to Cede Control to Lenders - Wall Street Journal
Tribune laid out its plans to cede control of the company to its lenders, as the newspaper-and-television company tries to end 16 months under bankruptcy protection. (more...)
SEC Charges Star Manager - Wall Street Journal
The SEC charged broker-dealer Morgan Keegan, former mutual-fund star James Kelsoe and another employee with fraud, saying they manipulated the prices of bond funds that were suffering steep losses. (more...)
Greenspan Grilled Over Role in Crisis - Wall Street Journal
Former Fed chief Alan Greenspan defended the central bank's actions amid harsh criticism as he appeared before a commission investigating the causes of the financial crisis. (more...)
Citi took outside advice on securities - Financial Times
Citigroup's disastrous foray into complex securities before the financial crisis was partly based on the recommendation of outside consultants hired to advise the bank's leaders, a former senior manager revealed (more...)
It’s a bank run! Or at least, it’s an outflow. Is Jean-Claude Trichet watching?The European Central Bank president is due to give what some commentators have called... (more...)
Further reading - Financial Times
Elsewhere on Thursday,- Deutsche Bank, Riga and muni derivatives.- And more on muni CDS.- Who controls the Bank of Japan?- Madoff’s apartment is about to get creepier.... (more...)
New York manager closes Talf funds - Creditflux
New York-based alternative investment manager Belstar Group has announced that it has closed two Talf credit funds totaling $280 million. It says the Belstar Credit Fund and Belstar SJ Credit Fund were launched in March 2009, and have bought ABS and CMBS assets under the Federal Reserve’’s Talf programme. The… (more...)
HCA bonds and CDS outperform on IPO news - Creditflux
US hospital chain operator HCA was among yesterday’s actively rallying credits, on news that the company is preparing an initial public offering (more...)
Banks Winning When Investors Sue - Wall Street Journal
Banks are on a winning streak in their battle against investor lawsuits stemming from the financial crisis. (more...)
PBOC Adviser Calls for Yuan Managed-Float - Wall Street Journal
Central bank adviser Xia Bin said that China should resume a managed-float foreign-exchange system soon because the impact of the global financial crisis has faded. (more...)
Central bank intervenes on short-selling of Greek bonds - Creditflux
Trading desks have been told they must cover short bond positions by end of day (more...)
Credit manager hires two from BlueCrest - Creditflux
A New York-based credit manager has hired two marketers from BlueCrest Capital (more...)
Sovereign panic hits European financial spreads - Creditflux
Greece problems are again holding the attention of the credit market today (more...)
FSA Fines Credit Suisse, Instinet For Failure To Report - Wall Street & Technology
The firms were found to have committed multiple breaches that resulted in failures to provide transaction reports promptly and correctly to the FSA. (more...)
FSA Fines Firms for Reporting Breaches - Wall Street Journal
Credit Suisse Group was fined $2.67 million by the U.K. regulator for failing to make accurate reports of about 40 million transactions. Market maker Getco Europe and broker Instinet Europe were also fined. (more...)
Pricing Partners signs up Ofi as a client - Creditflux
Paris-based asset manager Ofi Asset Management has signed up with Pricing Partners, according to an announcement from the derivative pricing software provider. It says it will provide Ofi with models to value structured assets including credit, such as CDOs, ABS and mortgage-backed securities. (more...)
Momentum Building for Financial Reform-White House - Advanced Trading
Political momentum to toughen U.S. bank rules is building, the White House said Wednesday, as President Barack Obama shifts his focus to financial regulation after victory on healthcare reform. (more...)
ECB leaves interest rate on hold at 1% - Financial Times
Eurozone official interest rates have been left unchanged as the central bank prepares its response to the escalating crisis over Greece's public finances (more...)
‘the deterioration in fiscal balances has been structural rather than cyclical’ - Financial Times
The credit portfolio strategy team at BNP Paribas is worried. In a note published on Thursday, the credit analysts mused on Greece, the potentially disruptive and steady uptick... (more...)
Chart du jour: The Greek bank deposit plunge - Financial Times
From IHS Global Insight senior economist Diego Iscaro on Thursday, a chart of the total deposits held at Greek financial institutions:As Iscaro notes, the chart is inspired... (more...)
Deutsche Bank, Latvian bridges and EVFs - Financial Times
Risk — the magazine that first reported the story of Goldman’s Trojan currency swaps — has done some digging into how the Latvian capital of Riga managed to “lay... (more...)
Want to help Greece? There’s an account for that. - Financial Times
Now you too can help support the Greek economy.The National Bank of Greece — which is not, by the way, the central bank of the Hellenic Republic — is encouraging... (more...)
Trichet: ‘Default is not an issue for Greece’ - Financial Times
European Central Bank president Jean-Claude Trichet gave his traditional post interest-rate decision press conference on Thursday in interesting circumstances.While rates were left unchanged,... (more...)
ECB leaves interest rates unchanged - Financial Times
The European Central Bank left eurozone interest rates on hold at 1.0 per cent on Thursday.As Barclays Capital’s Julian Callow summed it up (our emphasis):No surprises there,... (more...)
Loan maturity wall may be further off than expected, shows research - Creditflux
New research by London-based structured credit software provider Codean shows that the loan maturity “wall” is further off than many expect. The firm looked at the maturities of loans held by a selection of European and US CLOs and found that the biggest hurdle for US loan refinancing does not… (more...)
Consultants made us build up in CDOs says ex-Citi official - Creditflux
The Financial Times reports that Oliver Wyman is the consultancy firm that former Citi co-head of investment banking Thomas Maheras referred to in testimony to a US congress investigation yesterday. Maheras said that the decision to build up its CDO business in 2005 was made on the recommendation of outside… (more...)
Momentum Building For Financial Reform - Wall Street & Technology
Political momentum to toughen U.S. bank rules is building, the White House said Wednesday, as President Barack Obama shifts his focus to financial regulation after victory on healthcare reform. (more...)
How Electronic Can Europe Get? - Advanced Trading
While the U.S. has led the world in the adoption of electronic trading, Europe is quickly catching up, driven by MiFID and the subsequent explosion in fragmentation. (more...)
Spotlight falls on role of consultancies - Financial Times
The revelation this week that Citigroup's disastrous expansion into the complex mortgage securities that lay at the heart of the financial crisis was based in part on a study by outside consultants has raised serious questions about the bank's managerial judgment (more...)
Collateralised loan obligations - Financial Times
Although bankers' eyes may have lit up after the first issue in more than a year, it is too early to consider a return to boom-time debt deals (more...)
Would you stick with a failed bank? - Financial Times
American Banker on Thursday published a piece on an under-examined phenomenon: how do the consumers of the hundreds of small and regional banks that have failed and subsequently... (more...)
Well, where does Greece go from here? - Financial Times
Having watched Greek bonds plunge to new lows on Thursday, as credit default swaps on Greece set new records it was practically de rigueur to consider this as some soft of tipping point.... (more...)
CDS report: Greek default not an issue? - Financial Times
“A default is not an issue for Greece”, ECB President Jean-Claude Trichet declared this afternoon. The activity in the CDS and government bond market this morning suggested otherwise.... (more...)
The Greek tragedy, recapped - Financial Times
By way of context and explanation for Thursday’s Greek carnage in the debt and derivatives markets — in which Greek-bund spreads and Greek credit default swaps spiked... (more...)
‘No chance of Greece going bankrupt’ - Financial Times
With markets being spooked left, right and centre due to Greece’s ongoing debt travails, it’s good to see the Greek government providing some reassuring commentary to soothe concerns.... (more...)
Junk bank rally - Financial Times
Here’s a banking data point in the model-breaking, crisis-forgetting, junk-crazy, dash-for-trash.From Barclays Capital’s excellent first-quarter US bank results preview:... (more...)
Greenspan Says Adequacy of Bank Capital Key Issue - Wall Street & Technology
Former Federal Reserve Chairman Alan Greenspan said Wednesday that the key question for regulators seeking to avert future financial crises is to decide what capital levels financial firms should meet. (more...)
SEC Seeks Tighter Securities Rules - Wall Street Journal
The SEC approved a proposal that encourages issuers of asset-backed securities, such as those based on mortgages, to retain at least 5% of the credit risk. (more...)
Bank appoints New York credit sales heads - Creditflux
Deutsche Bank has announced that Casey Talbot will join as a managing director and head of high grade credit sales and co-head of credit sales within the global markets division. In addition, Deutsche has appointed Faris Naber to head of non-investment grade sales and co-head of credit sales. Both Talbot… (more...)
CDS Insider-Trading Trial Begins - Wall Street Journal
The SEC argued at the opening of a closely watched trial that a Deutsche Bank bond salesman tipped a client about a high-yield bond offering by VNU, allowing the client to make improper trades in credit-default swaps. (more...)
Greenspan, Panel Spar Over Fed's Role - Wall Street Journal
The Fed took steps to address the root causes of the financial crisis but was limited in its ability to affect changes, Greenspan said, even as members of a bipartisan panel accused the central bank of a "failure to act." (more...)
The pressure is on Jean-Claude Trichet. On Thursday at 13.30BST, the ECB president is due to explain the euro central bank's new-fangled collateral policy, which is of some relevance... (more...)
Swaps Trial: Can Inside Trading Be Done in an Unregulated Market? - Wall Street Journal
The SEC argued at the opening of a trial that a bond salesman at Deutsche Bank's Wall Street arm tipped a client about a high-yield bond offering by VNU, allowing the client to make improper trades in credit-default swaps. (more...)
Array of Investors Pummel Greece - Wall Street Journal
Those betting against debt-burdened Greece and the euro aren't just hedge funds and speculators looking for fast profits, but also corporations, asset managers and banks seeking to protect themselves. (more...)
SEC Charges Star Manager - Wall Street Journal
The SEC charged broker-dealer Morgan Keegan, former mutual-fund star James Kelsoe and another employee with fraud, saying they manipulated the prices of bond funds that were suffering steep losses. (more...)
Greenspan Grilled Over Role in Crisis - Wall Street Journal
Former Fed chief Alan Greenspan defended the central bank's actions amid harsh criticism as he appeared before a commission investigating the causes of the financial crisis. (more...)
Credit Swaps 'Insider' Trial Under Way - Wall Street Journal
The SEC argued at the opening of a trial that a bond salesman at Deutsche Bank's Wall Street arm tipped a client about a high-yield bond offering by VNU, allowing the client to make improper trades in credit-default swaps. (more...)
Leading credit derivatives marketer joins Unicredit - Creditflux
Unicredit has hired a veteran credit derivatives and structured credit specialist for a senior role in its London office (more...)
BOJ Holds Rates Steady - Wall Street Journal
The Bank of Japan held rates unchanged and indicated the economy appears to have moved a step higher, but the central bank didn't officially upgrade its assessment. (more...)
BlueMountain raises $250 million for new credit funds - Creditflux
BlueMountain Capital Management has announced that it has raised three new credit funds totaling $250 million. The BlueMountain Long/Short Credit Fund began trading in February, while this month the BlueMountain Distressed Fund started trading, as did a single-client fund focusing on securitised investments. The announcement adds that the New York-based… (more...)
JP Morgan, I put a spell on you - Financial Times
There's nothing like hard times to bring out the bank-bashing craziness. And JP Morgan is no stranger to recession-induced weirdness. For instance, in 1933, in the midst of the Great Depression,... (more...)
Dimon Takes a Stand on Finance Overhaul - Wall Street Journal
As Congress prepares to take on financial regulation, plenty of banking executives—stung by Washington's bashing—are keeping a low profile. James Dimon, J.P. Morgan's CEO, isn't one of them. (more...)
Atalaya raises $250 million for bank debt fund - Creditflux
New York-based alternative investment manager Atalaya Capital has announced that it has closed its third fund offering, raising a vehicle to invest in the debt of small and mid-size companies, especially banks. It says the Atalaya Fund III is capped at $250 million, which it raised in less than three… (more...)
CDS report: Greece wider than Iceland - Financial Times
The European credit markets widened today as the worsening Greece situation wore down the resilience shown in recent days. Greece’s spreads soared through the 400bp barrier... (more...)
Tradeweb announced that the first electronic swap trade on a multi-dealer platform has been centrally cleared by an institutional client. (more...)
GM Reports $4.3 Billion Loss - Wall Street Journal
GM posted a $4.3 billion loss for the second half of 2009, in the first accounting of the auto maker's balance sheet since the company emerged from bankruptcy protection. (more...)
Japan Holds Rates Steady - Wall Street Journal
The Bank of Japan held rates unchanged and indicated the economy appears to have moved a step higher, but the central bank didn't officially upgrade its assessment. (more...)
Fed's Dudley Calls for Action on Bubbles - Wall Street Journal
New York Fed President Dudley said damage caused by financial-market bubbles should bring about a sea change in the way the central bank operates, with the Fed needing to move toward active efforts to reign in excess. (more...)
Citi took outside advice on securities - Financial Times
Citigroup's disastrous foray into complex securities before the financial crisis was partly based on the recommendation of outside consultants hired to advise the bank's leaders, a former senior manager revealed (more...)
US consumer credit, re-crunched - Financial Times
January, it seems, was a blip – albeit a bigger blip than first believed. But the trend in shrinking consumer credit in the US looks to have reasserted itself: figures released... (more...)
A quant mea culpa - Financial Times
Spare a thought for Matthew Rothman, the analyst charged with telling clients of Barclays Capital why the bank's US equity quant model appears to be broken: "We saw underperformance... (more...)
Consumer Credit Declined in February - Wall Street Journal
More consumers are keeping up with payments on their credit cards and other loans. But that's coming at a cost: They're cutting back sharply on borrowing as they pare back debt. (more...)
Banks Winning When Investors Sue - Wall Street Journal
Banks are on a winning streak in their battle against investor lawsuits stemming from the financial crisis. (more...)
Morgan Keegan Faces SEC Fraud Charges - Wall Street Journal
The SEC charged broker-dealer Morgan Keegan and two employees with fraud, saying they manipulated the prices of bond funds that were suffering steep losses. Finra also filed its own complaint in the matter. (more...)
European corporates underperform as sovereigns stabilise - Creditflux
Credit spreads have widened again today, but sovereigns are generally outperforming corporate credits (more...)
NYSE plans to launch interest rate futures - Financial Times
New York operator's challenge to Chicago's hold on derivatives marks a new phase in decades of rivalry between the cities (more...)
Finra Fines Citigroup $650,000 - Wall Street Journal
Finra fined Citigroup $650,000 for disclosure and supervisory violations in the authority's first enforcement action involving a broker-dealer stock borrow program. (more...)
Breaking pre-market news on Tuesday,- Reserve Bank of Australia’s Stevens raises key interest rate to 4.25 per cent – statement.- NYSE’s European dark pool Says Q1 trading surges –... (more...)
Investors really ? junk. We mean really. - Financial Times
When people talk of junk bond rallies (and they have been talking - a lot) what junk are they referring to exactly?, FT Alphaville asks. The Bank of America Merrill Lynch High... (more...)
Portugal’s banks: reasons to be cheerful? - Financial Times
We do wonder if you’re right, Theodoros Pangalos.The Greek deputy prime minister has (rather shamelessly) picked Portugal as the ‘next victim’ of Europe’s... (more...)
Virgin Money Confirms Ross Stake - Wall Street Journal
Virgin Money said Wilbur Ross has bought a 21% stake in the financial company, allowing the U.K. consumer credit business group to accelerate its U.K. banking expansion. (more...)
Britain's Brown Says Global Bank Tax Accord Close - Wall Street & Technology
British Prime Minister Gordon Brown said the world's large economies were close to agreeing a global tax on banks to help prevent another financial crisis, the Financial Times reported on Monday. (more...)
'Too Big To Fail' In Crosshairs Of Reform Debate - Wall Street & Technology
A U.S. Democratic lawmaker and top bank regulator Monday defended legislative efforts that they say would end the perception that some firms are "too big to fail," challenging Republican complaints about the financial reform bills. (more...)
Australia Boosts Rates - Wall Street Journal
The Reserve Bank of Australia Tuesday raised its key policy rate for a fifth time since October 2009, highlighting again its concerns about rising house prices in an economy now well entrenched in recovery. (more...)
From CDOs to EMs – what could go wrong? - Financial Times
File this under ‘looking bubblicious’: according to a Reuters report on Monday, “displaced credit experts” have shifted their focus away from CDOs and other... (more...)
NYSE Plans Interest-Rate Futures - Wall Street Journal
NYSE Euronext's plan to introduce a family of U.S. interest-rate futures in the third quarter will put it up against sector heavyweight CME Group and upstart ELX Futures. (more...)
Greece bailout wrangling sends spreads sharply wider - Creditflux
Another round of euro-zone political wrangling caused Greece credit default swaps to gap out 56bp to 390/405bp today (more...)
Credit derivatives marketer jumps bank - Creditflux
A London-based credit derivatives marketer is rumoured to have left the bank and heading to another (more...)
CDS report: Greece under scrutiny (again) - Financial Times
Greece’s CDS spreads spiralled upwards today, providing a reminder that the sovereign’s problems are far from solved. The country’s spreads rose to 400bp, 50bp... (more...)
Court Strikes at 'Net Neutrality' - Wall Street Journal
A federal court ruled that the FCC lacks the authority to require broadband providers to give equal treatment to all Internet traffic flowing over their networks. (more...)
Dallas Fed's Fisher: Inflation Low on List of Worries - Wall Street Journal
Richard Fisher, president of the Federal Reserve Bank of Dallas, built a reputation as an outspoken inflation fighter in the summer of 2008. Today rising prices are low on his list of worries. (more...)
Deutsche Bank's Super X Algo Hits the Street - Advanced Trading
Deutsche Bank has launched its new Super X (Super Cross) algorithm to improve access to dark liquidity for its clients. (more...)
NYSE?plans?to?launch?interest?rate?futures - Financial Times
New York operator's challenge to Chicago's hold on derivatives marks a new phase in decades of rivalry between the cities (more...)
Moody's Cuts Iceland's Outlook - Wall Street Journal
Moody's Investor Service downgraded Iceland's credit-rating outlook as uncertainty over the country's external liquidity mounts amid the Icesave dispute. (more...)
Venezuela: still the world’s riskiest sovereign (and other stories) - Financial Times
CMA DataVision released its quarterly global sovereign credit risk report on Tuesday, featuring 17 pages replete with charts and data on the ever-so-topical question: who’s... (more...)
Fed Minutes Boost Stocks - Wall Street Journal
Stocks turned higher after the Fed minutes increased confidence that the central bank will keep its key rate target near zero for awhile to come. (more...)
Tradeweb Completes Clearing Links for OTC Derivatives - Advanced Trading
Tradeweb has completed links to major clearinghouses for the clearing of OTC derivatives trades on its platform. (more...)
Dimon Takes a Stand on Finance Overhaul - Wall Street Journal
As Congress prepares to take on financial regulation, plenty of banking executives—stung by Washington's bashing—are keeping a low profile. James Dimon, J.P. Morgan's CEO, isn't one of them. (more...)
Australia raises interest rate to 4.25% - Financial Times
The country's central bank increases its key cash rate by 25 basis points, the fifth rise since October, as it gradually normalises policy to reflect a rapidly recovering economy (more...)
Dealer launches first managed CSO since the crisis - Creditflux
A bank is understood to have begun marketing a new managed CSO, which, if launched, would be the first for some two years (more...)
Short View: Goldilocks economy - Financial Times
Stock, commodity and credit marketsare again keen for evidence that the US economic recovery is just righwrites Aline van Duyn (more...)
Fannie, Freddie Touch Off Swaps Scrap - Wall Street Journal
The regulator of Fannie Mae and Freddie Mac plans to have the mortgage-finance giants use a clearinghouse for interest-rate swaps trade by year's end. Wall Street banks and exchanges are scrambling. (more...)
Should the world’s biggest investment banks (re)capitalise their UK units? - Financial Times
Over the weekend, the UK’s Sunday Times trumpeted: “world’s biggest investment banks ordered to inject billions”.The story suggested the Financial Services... (more...)
Should be the world’s biggest investment banks (re)capitalise their UK units? - Financial Times
Over the weekend, the UK’s Sunday Times trumpeted: “world’s biggest investment banks ordered to inject billions”.The story suggested the Financial Services... (more...)
Inflation Fears Cut Two Ways - Wall Street Journal
At the Federal Reserve, a debate is intensifying among officials over the likely course of inflation, as the central bank plots an exit from an unprecedented experiment in easy money. (more...)
WSJ vs Bloomberg on credit investors’ risk appetites - Financial Times
Both Bloomberg and the Wall Street Journal ran interesting — if ostensibly contradictory — pieces on the bond market on Monday.First the news wire on the appetite for step-up bonds:... (more...)
U.K. Politicians Hit Banker's Pay - Wall Street Journal
Bob Diamond, the American president of Barclays, is under attack from politicians of both leading British parties for what critics deride as his outsize pay package. (more...)
Inflation Fears Cut Two Ways at the Fed - Wall Street Journal
At the Federal Reserve, a debate is intensifying among officials over the likely course of inflation, as the central bank plots an exit from an unprecedented experiment in easy money. (more...)
Bond Buyers Accept More Risk - Wall Street Journal
Credit markets have staged a comeback. Now, it seems some of the exotic securities that were hallmarks of the credit bubble are having a small renaissance of their own. (more...)
Centerbridge, Paulson Ups Extended Stay Offer - Wall Street Journal
In an escalating battle over Extended Stay hotel chain, a group of creditors led by investment firms Centerbridge Partners and Paulson has matched a $905 million offer proposed by another group led Starwood Capital. (more...)
Argentina to Tap Reserves for Bond Payments - Wall Street Journal
President Cristina Kirchner's government was preparing to tap central bank reserves to make a payment to bondholders this week. (more...)
Centerbridge/Paulson Ups Extended Stay Offer - Wall Street Journal
In an escalating battle over the bankrupt Extended Stay hotel chain, a group of creditors led by investment firms Centerbridge Partners and Paulson & Co. has matched the $905 million offer proposed by another group led by Barry Sternlicht's Starwood Capital Group. (more...)
Inflation Fears Cut Two Ways at the Fed - Wall Street Journal
At the Federal Reserve, a debate is intensifying among officials over the likely course of inflation, as the central bank plots an exit from an unprecedented experiment in easy money. (more...)
Centerbridge, Paulson Ups Extended Stay Offer - Wall Street Journal
In an escalating battle over Extended Stay hotel chain, a group of creditors led by investment firms Centerbridge Partners and Paulson has matched a $905 million offer proposed by another group led Starwood Capital. (more...)
Bond Buyers Accept More Risk - Wall Street Journal
Credit markets have staged a comeback. Now, too, it seems some of the exotic securities that were hallmarks of the credit bubble are having a small renaissance of their own. (more...)
Lender Processing Unit Draws Inquiry - Wall Street Journal
Prosecutors are "reviewing the business processes" of a subsidiary of Lender Processing Services. The firm's data has been behind some faulty bank paperwork. (more...)
U.S. Probes Foreclosure-Data Provider - Wall Street Journal
Prosecutors are "reviewing the business processes" of a subsidiary of Lender Processing Services. The firm's data has been behind some faulty bank paperwork. (more...)
A Banker Finds a Cash Cow in Failures - Wall Street Journal
Thirty-seven Georgia banks have gone under since the start of 2008. State Bank & Trust chief Joe Evans is trying to bring eight of them back from the dead. (more...)
Business Books: The Inside Scoop on Lehman's Collapse - Wall Street & Technology
A literary genre to emerge from the financial crisis is the Big Bank Biography, led by "The Partnership," Charles Ellis' history of Goldman Sachs, and several tales of the end of Bear Stearns & Co. (more...)
California ire over Borat bonds - Financial Times
CDS on the Golden State's debt suggests it is a bigger credit risk than Kazakhstan, writes Spencer Jakab (more...)
Benmosche Upbeat on AIG Prospects - Wall Street Journal
AIG's CEO said it has made significant progress in asset sales, in reducing risk exposures at its derivatives unit, and dealing with bonus payments. Also, the Treasury selected two new board members to be appointed directors of AIG. (more...)
Credit-Crunch Relic Gets Fresh Look - Wall Street Journal
The first signs of life are appearing in the comatose market for securities made up of mortgages that don't carry government backing. But don't call it a revival. (more...)
Mortgage Problems? Fed Can Relate - Wall Street Journal
To understand the woes of banks and investors that hold loans and securities underpinned by real estate, the Federal Reserve Bank of New York needs only to look at its portfolio from two financial bailouts. (more...)
SocGen Probes Singapore Account - Wall Street Journal
French bank Société Générale is looking into "anomalies" in a client account in Singapore. (more...)
New Curbs for TARP-Recipient First Banks - Wall Street Journal
First Banks was put under tough new restrictions by U.S. regulators, raising questions about the government's ability to recover the $295.4 million in capital it invested in the firm. (more...)
Russia leads sovereign outperformers on bond issuance talk - Creditflux
Sovereign credits Russia, Turkey and Hungary are today outperforming European peers (more...)
Caution rules ahead of Europe's holiday and US non-farm data - Creditflux
European credit spreads are seeing little movement so far today ahead of the long weekend and look likely to end more-or-less where they began on Monday (more...)
Credit buyers pile into fibre glass maker - Creditflux
Growing numbers of credit investors are jumping a long trade in a buildings material company, according to sell-side sources (more...)
The IMF on Germany’s Bank-Asset-Berg - Financial Times
FT Alphaville has previously climbed the great leveraging mountain that German banks built up in the run-up to the financial crisis. Now the IMF has taken a look - and is pressing... (more...)
Further reading - Financial Times
Elsewhere on Thursday,- Don’t MBS with Texas.- The ol’ CDO collateral switch.- Words of caution on emerging market risk.- How to game CDS non-regulations.... (more...)
Start-Ups Chase Cash as Funds Trickle Back - Wall Street Journal
Starting a new business is easier than it was a year ago, but wealthy investors, venture-capital firms and banks are still trickling out money very selectively. (more...)
Japan's Business Mood Improves - Wall Street Journal
Japanese business sentiment reached its highest level since September 2008, the Bank of Japan's tankan survey showed, on strong overseas demand for Japanese products. (more...)
Five new buy-side firms volunteer for Isda committee duty - Creditflux
Isda has announced the new membership of its credit derivative determinations committee, following the first anniversary of the launch of this body. The dealer membership of the various meeting groups (one for each region) remain essentially the same. However, five new buy-side members have now stepped up to fill the… (more...)
The FT’s opinion pages on Thursday disclose a cutting series of comments from Patrick Honohan, governor of the Central Bank of Ireland, regarding the role of one entity in... (more...)
Germany, France Plan Bank Tax - Wall Street Journal
Germany moved toward a new bank levy to cover the cost of future bailouts, and France said it would pursue a parallel effort as leading world economies weigh strategies to prevent future crises. (more...)
Credit-Crunch Relic Gets Fresh Look - Wall Street Journal
The first signs of life are appearing in the comatose market for securities made up of mortgages that don't carry government backing. But don't call it a revival. (more...)
Icelandic bank launches new CPDO - Creditflux
An unnamed northern European bank is understood to be in the market with what would be the first new CPDO since the crisis. The arranger of the groundbreaking deal is not known, but it is understood to be an Icelandic institution, which is looking to distribute the notes to local… (more...)
The year so far in sovereign CDS: a non-hysterical view - Financial Times
Shock, horror — credit default swap dealers haven’t liked the whiff of grapeshot from recent proposals to ban their market, not one bit, and they’ve been trading accordingly.... (more...)
NY Fed Reveals Its Bear Stearns Portfolio - Wall Street & Technology
Two years after the near collapse of Bear Stearns, the New York Federal Reserve is finally revealing the $30 billion worth of ailing assets it took on as part of a hastily arranged rescue of the investment bank. (more...)
[Ireland's Bad Bank] The Enig-NAMA variations - Financial Times
An important step, said the IMF. ‘An ingenious mechanism,’ Moody’s opined.Just as well. Ever since Ireland’s National Asset Management Agency (NAMA)... (more...)
Credit where it counts? - Financial Times
*Poof* That is the sound of US bank credit evaporating.Or maybe, a giant *Pop* would be more apt given the credit frenzy pre-2007.Gluskin Scheff’s David Rosenberg estimated... (more...)
Fed Opens Books on Toxic Assets - Wall Street Journal
The Federal Reserve Bank of New York lifted a veil of secrecy on the troubled mortgage assets it purchased as part of the 2008 rescues of Bear Stearns and AIG. (more...)
Germany Probes UBS Allegations - Wall Street Journal
The German financial regulator BaFin has launched a special probe into allegations of tax evasion at the German branch of Swiss bank UBS. (more...)
Achieving this milestone is part of a commitment made by Deutsche Bank to clients and regulators to improve derivative market infrastructure. (more...)
Germany Probes UBS Claims - Wall Street Journal
The German financial regulator BaFin has launched a special probe into allegations of tax evasion at the German branch of Swiss bank UBS. (more...)
CDS report: Ship of fools - Financial Times
Ireland has been held up as an example of a country ready to suffer pain in tackling its acute fiscal situation. Austerity – surely one of the most overused words in recent... (more...)
Mortgage Problems? Fed Can Relate - Wall Street Journal
To understand the woes of banks and investors that hold loans and securities underpinned by real estate, the Federal Reserve Bank of New York needs only to look at its portfolio from two financial bailouts. (more...)
Benmosche Upbeat on AIG Prospects - Wall Street Journal
AIG's CEO said it has made significant progress in asset sales, in reducing risk exposures at its derivatives unit, and dealing with bonus payments. Also, the Treasury selected two new board members to be appointed directors of AIG. (more...)
[Ireland's Bad Bank] The morning after… - Financial Times
. . . After Ireland’s new bad bank rolled out swingeing haircuts on Tuesday for the troubled loans Allied Irish Bank and Bank of Ireland want to offload on to it, that is.... (more...)
IMF squabbles, Polish edition - Financial Times
A curious -- if bitter -- row is developing in Poland over the country's use of its $20.5bn IMF credit line, FT Alphaville writes. The finance ministry wants more of it, while... (more...)
The terrorist model for banks - Financial Times
Al-Qaeda. IBM. Power grids. Dominoes. Pollution. Facebook friends. FT Alphaville finds that these are just some of the subjects Andrew Haldane, the Bank of England's executive... (more...)
Irish Banks Flag Results, Next Steps - Wall Street Journal
Bank of Ireland is working with a "syndicate of major international investment banks" to help raise the $3.6 billion it needs to meet new capital standards, while nationalized lender Anglo Irish Bank posted the biggest loss in Irish corporate history. (more...)
Bank-Levy Efforts Gain Momentum - Wall Street Journal
Germany moved toward a new bank levy to cover the cost of future bailouts, and France said it would pursue a parallel effort as leading world economies weigh strategies to prevent future crises. (more...)
ICBC, World Gold Council, Link Up - Wall Street Journal
The World Gold Council signed an agreement with Industrial & Commercial Bank of China to cooperate on developing new gold investment products and programs for the Chinese lender's clients, council chairman Ian Telfer said in an interview. (more...)
Bank desk recommends Lafarge step-up bond trades - Creditflux
BNP Paribas trading analysts have made two trade recommendations based on their view of a 50% likelihood that Lafarge is downgraded to BB+ by either Moody’s or S&P following Q1 results (more...)
Swiss Readying UBS Client Data For Handover To U.S - Wall Street & Technology
The Swiss government said it would continue to process information on U.S. client accounts from UBS in the run-up to a parliamentary vote on a deal to end a high-profile U.S. legal case against the bank. (more...)
Banking bubble (charts) - Financial Times
Warning: this post contains a bubble chart.Citi’s European banks research team has come up with a fresh take on earnings and valuation bubbles across major markets.Analysts... (more...)
FSA Charges Seven in 2008 Case - Wall Street Journal
The U.K. Financial Services Authority charged seven individuals in connection with an alleged 2008 insider-trading ring that it says profited from information passed on by people working for two major investments banks. (more...)
MGM Studios Granted Time - Wall Street Journal
Metro-Goldwyn-Mayer creditors agreed to extend the movie studio's debt deadline for the fourth time as it explores strategic options. Management is expected to present a plan to creditors Thursday. (more...)
California treasurer joins debate on CDS - Financial Times
California this week joined a global push to lift the veil on derivatives as questions abound about how they influence markets, particularly when debt issuers run into trouble (more...)
Fed Opens Books on Toxic Assets - Wall Street Journal
The Federal Reserve Bank of New York lifted a veil of secrecy on the troubled mortgage assets it purchased with taxpayer funds as part of the rescues of Bear Stearns and AIG, revealing a portfolio of loans and property that have lost their value and which borrowers are struggling to pay off. (more...)
General Growth Offer Has Deadline - Wall Street Journal
A Brookfield-led offer for General Growth Properties will remain on the table until year end, pending a ruling by a bankruptcy judge. (more...)
Germany, France Plan Bank Tax - Wall Street Journal
Germany moved toward a new bank levy to cover the cost of future bailouts, and France said it would pursue a parallel effort as leading world economies weigh strategies to prevent future crises. (more...)
Assenagon: the basis hunter - Creditflux
Negative basis used to be an easy trade. But now Munich-based credit manager Assenagon must hunt high and low for these elusive opportunities. (more...)
Wolseley - Regulator’s funny ideas could get us all in trouble - Creditflux
Wolseley went to Megabank’s credit conference recently and an excellent affair it was, too. Megabank struck just the right note of confidence and optimism without any of the bull market frippery of yesteryear. There was no rock star emerging from the crowd to play a guitar solo and no gala… (more...)
Defaults slow to a trickle - Creditflux
The number of global defaults recorded by Creditflux fell to $4.4 billion in February (more...)
Signs of better health for European banks - Financial Times
Banks borrowed much less than expected from the European Central Bank on Wednesday in the final emergency six-month tender in a sign of the improving health of the financial system (more...)
Fishknife - Throwing some light on secondary CDO trading - Creditflux
Politicians and regulators often attack credit default swaps as being secretive, illiquid and opaque. Shhh! Don’t tell them about the secondary market for CDOs. Forget the debates about whether products should be traded on an exchange or through a central counterparty. Secondary CDO trading has only barely graduated to email.… (more...)
European bank legacy books hold $1 trillion - Creditflux
Citi has estimated in a recent presentation to investors that there are $947 billion of legacy structured products on the books of European banks (more...)
Getco appoints former Fed governor as advisor - Financial Times
Getco, the US-based electronic trading and market-making firm, on Wednesday made a high-profile appointment to its business by naming Randall Kroszner, a former Federal Reserve bank governor, as an advisor (more...)
Start-Ups Chase Cash as Funds Trickle Back - Wall Street Journal
Starting a new business is easier than it was a year ago, but wealthy investors, venture-capital firms and banks are still trickling out money very selectively. (more...)
Japan's Business Mood Improves - Wall Street Journal
The Bank of Japan's tankan survey showed business sentiment improved, helped by rising exports to Asian nations and government economic stimulus measures. (more...)
CDS report: All on Good Friday - Financial Times
European credit markets were devoid of momentum today as the upcoming Easter holiday and the impending US jobs report on Friday led to inertia. Investors received an inkling of... (more...)
Moody’s downgrades five Greek banks - Financial Times
Moody’s on Wednesday downgraded the deposit and debt ratings of five Greek banks, citing “a weakening in the banks’ stand-alone financial strength and anticipated... (more...)
Breaking pre-market news on Wednesday,- BSkyB to challenge Ofcom ruling on Pay TV market – statement, statement and report.- Bank of Ireland says preparing rights issue... (more...)
Insider Case Tests Regulators - Wall Street Journal
A Deutsche Bank bond salesman and a hedge-fund trader stand accused of improperly using nonpublic information involving a bond offering. (more...)
Doubts over Deutsche and Deloitte’s derivatives dealings - Financial Times
Employees of Deutsche Bank, Deloitte Touche Tohmatsu and Banca Italease may face charges in Milan related to an ongoing investigation into derivative sales, Bloomberg reported on Tuesday.... (more...)
The CDS inquisition, California edition - Financial Times
It was only a matter of time. California — following in the footsteps of Ireland and Iceland, Greece, Spain, and politicians of all stripes and nationalities — has... (more...)
Swaps dislocation catches investors offguard - Financial Times
The scale of wrong-sided positions has been revealed by a collapse in US swap rates (more...)
Euro and dollar Libor pushed to record levels - Financial Times
Cost for banks to borrow over three months in euros falls to a record low amid weak demand, while that of borrowing in dollars hits a six-month high ahead of the end of Fed's quantitative easing programme (more...)
California seeks details of banks' CDS trade - Financial Times
California has asked large banks that underwrite the state's bond sales to detail their trading in credit default swaps on its debt, raising fresh questions about whether derivatives play a disruptive role in financial markets (more...)
Deutsche shuffles traders as more leave for rivals - Creditflux
Deutsche may be the first dealer to suffer as the annual staff-poaching season gets underway (more...)
The kindness of (bond market) strangers - Financial Times
As much as Greece rails against foreigners for their alleged involvements in its fiscal troubles -- from 'evil' CDS speculation to stealing their gold -- it sure is reliant on... (more...)
RBS Fined Over Competition Breach - Wall Street Journal
Britain's Office of Fair Trading ordered the Royal Bank of Scotland to pay $42.8 million for colluding with Barclays on loan pricing, in one of the largest U.K. fines against a single company and the largest for a bank. (more...)
Why are you helping people short my bonds, Cali treasurer asks banks - Creditflux
Bloomberg reports that California’s treasurer has asked six banks that underwrite its general obligation (GO) bonds to explain why they also make markets in credit default swaps on the state. According to the article, treasurer Bill Lockyer has written to JP Morgan, Bank of America Merrill Lynch, Barclays Capital, Citi,… (more...)
UBS hires JP Morgan credit trader - Creditflux
UBS has made another hire as it continues to build up its credit sales and trading business (more...)
Fitch knows what Greek CDS did last summer - Financial Times
Add one to the list of Greece CDS-speculator exonerators: Fitch SolutionsThe rating agency offshoot has done a study with a slightly different focus; CDS liquidity, a measure... (more...)
Comment: There are alternatives to a ban on shorting sovereigns - Creditflux
Ahead of a Creditflux panel discussion on planned restrictions on sovereign credit default swaps, Matteo Sotti presents an upfront alternative (more...)
Jefferies hires bank's head of credit structured product sales - Creditflux
Investment banking firm Jefferies has announced it has hired Royal Bank of Scotland’s European head of credit structured products and solutions sales, Cyril Paillard, as managing director in mortgage and ABS sales. Based in Paris, he will cover institutional clients in France and Northern Europe. Paillard will work closely with… (more...)
Mind the debt funding gap, banks - Financial Times
European banks and troubled commercial real estate: it’s not over until it’s over. And as a report from DTZ, the London-based property broker, argued on Monday —... (more...)
NAB, AXA Strike Deal - Wall Street Journal
National Australia Bank struck an agreement with France's AXA SA over its planned takeover of AXA Asia Pacific Holdings, which will see NAB emerge with AXA Asia Pacific's Australian and New Zealand operations. (more...)
Ambac parent may have triggered bankruptcy, say market sources - Creditflux
The regulatory actions taken by Ambac’s insurance regulator could be a credit event not only for its operating company but also for the parent (more...)
Dealer desks trade $1 billion through HY on 'quiet' roll - Creditflux
Yesterday's CDX HY index roll saw the differential between outgoing series 13 and incoming 14 slightly greater than its 1.5 point ascribed fair value (more...)
LCH.Clearnet Launches Clearing Service for Credit Default Swaps - Advanced Trading
LCH.Clearnet beegan clearing the first CDS index contracts on Monday, March 29th, to bring security and transparency to OTC derivatives markets. (more...)
Ireland Tackles Bank Problem - Wall Street Journal
Ireland's opening of a national bad bank is an effort to cleanse the country's banking system of bad debts and kick-start fresh lending. (more...)
Painful Countdown in Ireland - Wall Street Journal
Irish banking stocks, already battered, plunged anew as it became clearer government rescue efforts will likely lead to expanded nationalization. (more...)
Gulf Monetary Council Taps Chairman - Wall Street Journal
The governor of Saudi Arabia's Central Bank, Muhammad Al Jasser, was named chairman of the Gulf Monetary Council, taking the region a step closer to establishing a monetary union. (more...)
An Irish bad banks primer [updated] - Financial Times
Interested in Ireland’s new bad bank? Well, here’s a timeline for Tuesday’s announcement and a handy list of things to look out for. All times UK.(H/T a leading... (more...)
CDS report: When Irish Eyes Are On NAMA - Financial Times
“When Irish Eyes Are Smiling, sure ’tis like a morn in spring.” is the first line of the one of the most famous tribute songs to Ireland. While it is spring now,... (more...)
Bond insurer blow-up fallout, Las Vegas Monorail edition - Financial Times
Some excellent reporting from Bloomberg on the side effects of Ambac’s part-seizure by its regulator – and for once, for the story has nothing to do with credit default swaps.... (more...)
[Ireland's Bad Bank] PCAR - Financial Times
PCAR? That’s Prudential Capital Assessment Review in longhand, and here’s is what it means for Ireland’s banks:Allied Irish Banks plc (“AIB”):(1)... (more...)
[Ireland's Bad Bank] Haircut, sir? - Financial Times
Ireland’s National Asset Management Agency (NAMA) on Tuesday announced the haircuts it will impose on toxic loans submitted to it by Irish banks, including Allied Irish Bank... (more...)
[Ireland's Bad Bank] A primer [updated] - Financial Times
Interested in Ireland’s new bad bank? Well, here’s a timeline for Tuesday’s announcement and a handy list of things to look out for. All times UK.(H/T a leading... (more...)
Uncertainty Over Volcker Rule Impacts Proprietary Trading Desks - Advanced Trading
While it is doubtful that the Volcker Rule will pass as is, it already is having an effect on banks, which are spinning off proprietary trading desks. (more...)
Markit to provide CDS, bond and loan liquidity metrics - Creditflux
Markit has announced it will provide liquidity metrics for all credit default swaps, evaluated bonds, loans and asset backed securities included in its pricing services. The aim is to give market participants a view on the liquidity of financial assets across the fixed income markets. The metrics will be introduced… (more...)
Further reading - Financial Times
Elsewhere on Monday,- Are Chinese statistics manipulated? A World Bank-er says no.- Wine, not cider, hit hardest by Darling’s tax rise.- Taleb is on an internet diet. Side effect:... (more...)
China's Central Bank Taps Scholars - Wall Street Journal
China's central bank named three prominent scholars to its monetary policy committee, expanding the range of its outside advisers at a time when it faces a series of tough decisions on the currency, interest rates and other economic policies. (more...)
U.K. Consumer Lending Hits 19-Month High - Wall Street Journal
U.K. consumer lending posted its strongest rise for 19 months in February, a sign that the Bank of England's efforts to tackle the devastating credit crunch are paying dividends, official data showed. (more...)
Bank-Tax Concept Gains Momentum - Wall Street Journal
The U.S. and European governments are moving toward a consensus on taxing large banks to cover the cost of any future bailouts rather than asking taxpayers to foot the bill, as happened regularly in past banking crises. (more...)
UBS Brokerage Cuts 200 Jobs; Executives Depart - Wall Street & Technology
Swiss banking giant UBS AG cut 200 headquarters jobs in its U.S. brokerage unit, people familiar with the situation said, as wealth management chief Robert McCann looks to slash costs and drive further senior leadership changes. (more...)
GM Delays Filing Financial Report - Wall Street Journal
General Motors said it will delay by two weeks the release of financial results for the fourth quarter, which will be the first official disclosure of the auto maker's financial performance since exiting bankruptcy last year. (more...)
Markit plans scores for trade rating - Financial Times
Regulators are forcing traders and investors to pay more attention to liquidity following freezing of credit markets during financial crisis (more...)
Dow Up as Energy Stocks Rise - Wall Street Journal
Surging oil prices drove energy stocks higher, leading the broader market to a modest gain tempered by weakness among bank shares. (more...)
CDS report: A turn in an era? - Financial Times
Events in history come in big and small packages. Sometimes these moments come as flashpoints; sometimes they are more subtle. Two of today’s headlines seem to be small... (more...)
Ireland takes focus as government moves on banks - Creditflux
Ireland has become the European sovereign in focus today, on reports that the government is to increase its stake in Allied Irish Banks and Bank of Ireland to 70% and 40% respectively (more...)
Irish government action presents bank LT2 opportunity, says RBC - Creditflux
Royal Bank of Canada has published research say that today’s action by the Irish government may present an opportunity to buy bank’s lower tier two paper. The Irish government is expected to announce plans to effectively nationalise most of the banking system. RBC says it forecast this outcome some time… (more...)
Heritage hires senior capital markets specialist - Creditflux
Heritage Capital, the merchant banking division of family-owned Banque Heritage, has appointed Rolf Friedrich as managing director in the capital markets group covering Germany and Austria. Based in London, Friedrich reports directly to Joseph Dryer and Peter Horbye, joint chief executives. Friedrich joins from LBBW in London where he was… (more...)
Greece returns to capital markets - Financial Times
Greece expects to raise €5bn from the issue, likely to be priced at a yield of 310 basis points over swaps, which together with an existing €8bn cushion of funding, would enable the country to cover fully its borrowing needs for April (more...)
Allied Irish Apocalypse - Financial Times
And to think NAMA was meant to restore confidence in Ireland’s banking system. Not in the short term, perhaps.Allied Irish Bank executives must have had a fun weekend,... (more...)
“Evidence of QE’s effectiveness remains somewhat elusive” - Financial Times
That’s the verdict from Richard McGuire, Senior Fixed Income Strategist at RBC Capital Markets on the matter of the Bank of England’s latest lending and money supply figures —... (more...)
Hypocrisy du jour, credit default swap edition - Financial Times
France will host clearing of credit default swaps on Monday -- shortly after Christine Lagarde, the French economic minister, mulled banning them. FT Alphaville can only note the record.... (more...)
LCH.Clearnet starts CDS clearing with French banks - Creditflux
Various media reports suggest that the French arm of clearing house LCH.Clearnet will launch its planned credit default swap clearing service today. The service will include only corporate indices denominated in euros and will be supported by French banks BNP Paribas, Societe Generale, Natixis and Credit Agricole. (more...)
Exiting Lloyds and RBS - Financial Times
How do you square this circle? The government wants to sell its stakes in Lloyds Banking Group and RBS, but wants to do so in a way that maximises taxpayer value.One way, according... (more...)
Bank-Tax Concept Gains Momentum - Wall Street Journal
The U.S. and European governments are moving toward a consensus on taxing large banks to cover the cost of any future bailouts rather than asking taxpayers to foot the bill, as happened regularly in past banking crises. (more...)
WaMu Files Chapter 11 Reorganization Plan - Wall Street Journal
Washington Mutual filed a Chapter 11 plan on Friday, sketching out how it plans to distribute more than $7 billion accumulated in the wake of the largest banking failure in U.S. history, that of its former subsidiary Washington Mutual Bank, or WaMu. (more...)
A new strategy, Business Transaction Processing, has emerged for monitoring and troubleshooting high-volume, complex environments in investment banks. (more...)
Bank of the West Hires Ex-Citibank President - Wall Street Journal
Bank of the West, a unit of BNP Paribas, hired Maura Markus to be president and chief operating officer, the second former Citigroup executive it hired in as many weeks. (more...)
UBS Poaches Rival Executive - Wall Street Journal
UBS said it has hired Credit Suisse's Lukas Gaehwiler to head its Swiss operations, in a move indicating the banking giant may be regaining its ability to attract key bankers. (more...)
Porsche Presses for Easier Fuel Rules - Wall Street Journal
Porsche is arguing that new U.S. fuel-economy and emissions rules would hit niche sports-car makers disproportionately hard. (more...)
Traders hold market call on new LCDS contracts - Creditflux
Participants in the market for North American loan credit default swaps will hold a call today at 12pm (more...)
Welcome to the brave new world of insider trading investigations - Financial Times
Listen up hedgies, traders and investment bankers: you are being very closely watched indeed.Regulators on both side of the Atlantic appear to have adopted a shock-and-awe campaign... (more...)
Big Banks Suspected in Muni Case - Wall Street Journal
More than a dozen banks and investment firms are suspected co-conspirators in a criminal probe into alleged bid rigging and price fixing in the municipal derivatives market. (more...)
US airline credits surge in as European merger hopes rise - Creditflux
US airline credits rallied sharply yesterday as the country’s transport department softened its position on whether European airlines can take a controlling stake in US brands (more...)
More on that Hamp-lified moral hazard - Financial Times
The below is a very timely — and thought-provoking — data set, given that things are once again heating up in the realm of US mortgage modification post-Bank of America’s... (more...)
Ambac has triggered a credit event, rules Isda committee - Creditflux
Isda’s North American credit derivatives determination committee has voted that there has been a credit event on Ambac Assurance Corporation (more...)
Golomt: or, the meaning of emerging market equities - Financial Times
Golomt, for the uninitiated, is a Mongolian bank whose CEO announced plans on Friday to make an IPO abroad between 2012 and 2013. Hong Kong is favoured, according to a (Chinese) Reuters interview.... (more...)
It’s official: Ambac’s CDS triggered - Financial Times
It’s the event Ambac thought would never, ever come:The International Swaps and Derivatives Association, Inc. (ISDA) announced that its Americas Credit... (more...)
Ambac drives trading as credit event speculation mounts - Creditflux
All eyes remain on Ambac today, as the market waits for clarification on whether a credit event has been triggered on the monoline (more...)
Ex-Lehman Bankers Promoted at Nomura - Wall Street Journal
Two former Lehman Brothers bankers now working at Nomura have been named co-heads of the Japanese firm's equities business for Europe, the Middle East and Africa (more...)
Banks Fail in Georgia, Florida, Arizona - Wall Street Journal
Four U.S. banks were seized Friday by state regulators, two in Georgia, one in Florida and one in Arizona, bringing the total number of bank failures to 41 in 2010. (more...)
FDIC Pares Loss Aid for Bank Buyers - Wall Street Journal
The FDIC said it will absorb a smaller percentage of the losses on soured loans covered by the agreements routinely reached with buyers of failed banks. (more...)
Further reading - Financial Times
Elsewhere on Friday,- Yves Smith is not a Big Short fan.- Let’s villify Deutsche Bank.- “Is this a turning point?”- Mankiw foresees record taxes.- “Hamp... (more...)
Cov-Lite Loans Make a Return - Wall Street Journal
Lyondell Chemical saw high demand as it pared the minimum yield on a covenant-lite term loan it will use to finance its exit from bankruptcy, showing the market may be losing its skittishness about such loans. (more...)
Credit Suisse CEO Earns $17.9 Million, Doubles Up Blankfein - Wall Street Journal
The pay package of Credit Suisse's Brady Dougan—$17.9 million in cash and stock for 2009—makes him one of the sector's best-paid executives. Goldman's Blankfein made $9 million. (more...)
GE Lifts Wind-Power Ambitions - Wall Street Journal
GE will invest $450 million to develop and expand its offshore wind turbine manufacturing, engineering and service facilities in Europe. (more...)
Senate Committee Chief Sees Swaps Reforms, Exemptions - Wall Street & Technology
U.S. financial reform should require the reporting of all trades in the $450 trillion swaps market and mandatory clearing for some but not all swaps, a key Senate committee chairman said. (more...)
Libor-gazing, counterparty-casing - Financial Times
Does anyone remember Libor?, asks FT Alphaville. The London Interbank Offered Rate, the reported cost of borrowing between banks, has fallen by the wayside a bit since it shot... (more...)
Further reading - Financial Times
Elsewhere on Thursday,- The greatest short ever told began with a meeting…- Booms and busts 1775-1944.- Homework assignments for central bankers.- Is principal reduction... (more...)
Bank Launches Plan to Cut Mortgage Debt - Wall Street Journal
BofA, under pressure from Massachusetts prosecutors, will reduce mortgage- loan balances as much as 30% for thousands of troubled borrowers. (more...)
Insider Case Ensnares UBS Banker, Friend - Wall Street Journal
U.S. prosecutors charged a UBS investment banker and his friend with insider trading for allegedly trading on nonpublic information regarding health-care