News

Current Articles | RSS Feed RSS Feed

Pimco Sues AIG Over Losses from 2008 Financial Meltdown

By Edvard Pettersson
April 1, 2015, Bloomberg Business

Pacific Investment Management Co. accused American International Group Inc. of misleading investors about “colossal” losing bets on unregulated credit-default swaps and subprime debt before the 2008 financial crisis.

Pimco seeks to hold AIG accountable for tens of billions of dollars in shares and bonds that were wiped out because of the insurer’s exposure to the swaps and residential mortgage-backed securities. AIG falsely claimed its exposure was remote even in a severe situation, Pimco said in a complaint filed March 27 in state court in Santa Ana, California.

full article describe the image (free)

SocialTwist Tell-a-Friend Related Posts with Thumbnails

Treasury Help Sought in Cross-Border Swaps Dispute

By Andrew Ackerman
March 26, 2015, The Wall Street Journal

Senate Agriculture Committee Chairman Pat Roberts (R., Kansas) is pressing the Obama administration to help resolve a protracted cross-border dispute over derivatives regulation, a fight that threatens to harm big U.S. firms like CME Group Inc. that fall under the committee’s oversight.

Mr. Roberts, whose panel has jurisdiction over derivatives markets, is asking the U.S. Treasury Department to help resolve a dispute over the cross-border treatment of clearinghouses—entities that are supposed to help prevent a market-wide collapse by ensuring either party in a derivatives transaction would get paid if the other side falters.

full article describe the image (subscription)

SocialTwist Tell-a-Friend Related Posts with Thumbnails

Chris Giancarlo Calls for Swaps Rule Rethink

By Aaron Timms
March 25, 2015, Institutional Investor

J. Christopher Giancarlo disagrees. He disagrees with the suggestion that the Commodity Futures Trading Commission’s overhaul of the U.S. swaps market is too advanced for there to be meaningful revisions to the rules already passed. And he disagrees with the suggestion that as a new CFTC commissioner recently arrived in Washington after 12 years in the interdealer brokerage business, his strident calls over the past couple of months for the CFTC to revisit its own rules on swaps trading represent the final death rattle of a stricken industry.

“This is not about defending an industry,” Giancarlo says. “Brokers have been around since the beginning of time and likely will be around to the end of time. It’s about defending liquidity and trading in the U.S. swaps market, which is vital to corporations’ ability to manage risk.”

full article describe the image (subscription)

SocialTwist Tell-a-Friend Related Posts with Thumbnails

Swap Gauge Expands in Latest Effort to Revive Derivatives Market

By John Glover
March 20, 2015, Bloomberg Business

Gauges investors use to hedge against losses or speculate on the credit quality of Europe’s financial companies have been expanded in the latest effort to revive the $14.8 trillion credit derivatives market.

Benchmark indexes of credit-default swaps now protect 30 of the region’s banks and insurers, up from 25 previously tracked. That’s the most since they were created and follows two successive expansions of Europe’s high-yield corporate benchmark.

full article describe the image (free)

SocialTwist Tell-a-Friend Related Posts with Thumbnails

Q&A: Commissioner Christopher Giancarlo, CFTC

By Gabriel Suprise
March 10, 2015, GlobalCapital

Swaps regulation needs to be overhauled in the US in order to stop trading flow moving away from the trading centres in New York and elsewhere in the US to foreign marketplaces, according to Christopher Giancarlo, Commissioner at the Commodity Futures Trading Commission. Gabriel Suprise was granted an exclusive interview with Commissioner Giancarlo, to discuss how these flows can be reversed and moved back to North America cia regulatory harmonization and global cooperation. Topics of discussion also included the made-available-to-trade process, Title VII under Dodd-Frank, electronic trading protocols, position limits and more.

GlobalCapital: You have mentioned that there have been a few problems with the execution of Title VII under Dodd-Frank within the remit of the CFTC. What are the most critical concerns affecting the derivatives markets that the CFTC should focus on this year?

full article describe the image (subscription)

SocialTwist Tell-a-Friend Related Posts with Thumbnails

Call for Review of Swaps Compensation

By James Hurley
March 11, 2015, The Times

MPs have warned that the government may have to intervene to address possible “systemic failures” in the financial regulator’s compensation scheme for victims of the mis-selling of complex interest rate derivatives.

The Treasury Select Committee demanded that the Financial Conduct Authority conduct a full review of its redress scheme for tens of thousands of small and medium-sized companies that were mis-sold interest rate swaps by high street banks.

full article describe the image (subscription)

SocialTwist Tell-a-Friend Related Posts with Thumbnails

Buyside Use of Futures Set to Grow as Swaps Fall Out of Favor

By John D'Antona Jr.
March 10, 2015, Traders Magazine

It looks like institutional use of swaps as an investment vehicle has seen its day and futures are slated to replace them in portfolios.

That's the view of Greenwich Associates, a market consultancy, which pointed out in a new report that new liquidity and capital rules will widen the cost difference between cheaper futures and standardized cleared swaps.

full article describe the image (free)

SocialTwist Tell-a-Friend Related Posts with Thumbnails

Swap Dealers Making Industry Model to Price Derivatives Deals

By Philip Stafford
March 9, 2015, Financial Times

The world’s largest swap dealers are working on an industry utility to allow them to independently calculate the full price of bilateral derivatives deals and head off a potential upcoming pricing confusion.

Dealers such as JPMorgan, Goldman Sachs and Deutsche Bank are involved in discussions over the creation of an open source model to work out the margin they will need to post for privately-negotiated deals between banks.

full article describe the image (subscription)

SocialTwist Tell-a-Friend Related Posts with Thumbnails

Swaps Users Eye Voluntary Clearing

By Helen Bartholomew
March 7, 2015, IFR

Almost half of over-the-counter derivatives users plan to begin centrally clearing swaps on a voluntary basis in the next three to four years, a survey of European swap-user clients at Linklaters’ CCP conference in London showed.

Among the delegates attending February’s event, 45% said they intended to clear products that will remain eligible for bilateral execution due to the regulatory capital benefits associated with routing such trades through central counterparties.

full article describe the image (subscription)

SocialTwist Tell-a-Friend Related Posts with Thumbnails

Swaps Industry Mulling New Utility for Margin Compliance

By Fiona Maxwell
March 9, 2015, Risk

Utility would run daily margin calls, using open source version of industry’s standard model; OpenGamma in talks to support the analytics

Banks and other market participants are considering setting up a new, industry-run utility to help firms comply with incoming rules on the margining of non-cleared trades, says Mas Nakachi, chief executive of OpenGamma, which is one of the firms involved.

full article describe the image (subscription)

SocialTwist Tell-a-Friend Related Posts with Thumbnails
All Posts