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October 29, 2014
...banks to record higher credit risk in derivatives transactions...both any potential loss and the risk that the counterparty may default (known as credit...borrowers in the country. Higher counterparty risk or downgrades trigger more collateral...By Satyajit Das
October 24, 2014
...will capture a large share of the derivatives market. But the risk is that trades between counterparties in different jurisdictions...subject to US law. If that US company has traded with a UK counterparty under English law, however, then there is some doubt as to...Scott O’Malia
October 21, 2014
...settlement risk, known as Herstatt risk, after the failure of a German...do not pass through a central risk management venue, such as an...pays out in a transaction when a counterparty defaults. Herstatt risk is usually greater for Asian...Philip Stafford
October 20, 2014
...According to a Bank of England analysis on liquidity risk published in 2011, if a bank stops sending payments...operational problem, the probability of at least one counterparty becoming “liquidity constrained” within the first...Kate Allen, Emma Dunkley and James Pickford
October 17, 2014
...capture market upside but without risking significant capital losses. However, critics say they carry significant counterparty risk, and are inflexible and high-cost. CompareStructuredProducts, which is owned by advisory firm Lowes, said the...Jonathan Eley
October 15, 2014
...alive rather than close them and risk a future market disaster, global...Sometimes known as a central counterparty (CCPs), it stands between...authorities are equally concerned the risk manager could fall into trouble...pay closer attention to their risk management practices. Pimco...Philip Stafford
October 15, 2014
...Fund, to cover up losses the listed fund made on its low-risk, low-return strategy marketed to investors. “These trades had no...investors or Weavering’s advisers the true identity of the counterparty to the deals. He allegedly forged the signatures of his brother...Caroline Binham, Legal Correspondent
October 10, 2014
...this month on the “Securities Markets Risk Outlook 2014-2015”. I am not going to attempt...credit providers, such as Lehman’s CDS counterparty risk managers, are all using pretty much the same risk management models as existed in 2007 and...By John Dizard
October 8, 2014
...institutions. Regulators have been concerned by the fallout if a counterparty exercised its right to close out swaps in those crucial hours after...need to determine if their clients are prepared to accept the risk that failing to close out derivative positions could cost them...By Philip Stafford in London
October 7, 2014
...with the bank within five weeks of its bankruptcy filing. That, in theory, helped the companies mitigate their counterparty risk with the failed bank but it also meant that Lehman’s estate had to spend years in court trying to claw back collateral...By Tom Braithwaite and Tracy Alloway in New York
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