Latest articles from Markets

Innovation fills the asset/liability gap

March 7, 2005

The search for yield has been producing great innovation in credit for some time. Now the focus has moved on to the more complex problems of European pension funds. Closing the yawning gaps between pension fund assets and liabilities takes more than a bit of yield enhancement to fix. Complex derivatives structures are often involved.

JP Morgan finds a solution that Bites

March 7, 2005

In a highly complex equity and debt transaction for Allianz, JP Morgan reworked instruments called Miles to devise a more flexible way for the insurer to deleverage its unwanted equity holdings. As Edward Russell-Walling reports, the solution was found when the two firms put their heads together.

KfW innovates with equity-linked bond

March 7, 2005

Germany’s KfW is once again breaking new ground, this time with an uridashi exchangeable bond. Edward Russell-Walling explains.
The word ‘unique’ is often used less than scrupulously. Yet as banks go, Germany’s state-owned Kreditanstalt für Wiederaufbau (KfW) really is one of a kind. As a vehicle for the country’s economic and social policy, it has become the largest financial issuer in Europe.

Equity derivatives spur growth

March 7, 2005

Asset management-related business is growing in volume and diversity as the search for yield and protection widens. Geraldine Lambe interviews Calvin Redlick, head of FIG for northern Europe at BNP Paribas.

Fair value pushes pensions to take a longer route

March 7, 2005

Few disagree that regulatory change in the Netherlands and Sweden will see pension funds increase their exposure to longer-dated bonds. As Chris Newlands finds out, the debate is about how big the shift will be.
When European regulators start revising pension solvency requirements, dealers and issuers tend to sit up and take note. Legislative efforts to increase pensioner protection and decrease exposure to market risk have historically led to large sums of money being directed into bonds.

Charles Murphy

March 7, 2005

Deutsche Bank’s European head of FIG, Charles Murphy, explains to Geraldine Lambe why the bank decided to beef up its financial institutions capability and what the main challenges have been.

Search for yield unearths new dangers in credit markets

March 7, 2005

Credit specialists have risen to market challenges with new products. However, the recent fashion for longer-dated synthetic CDOs could present more risks than investors realise. Natasha de Teran asks how concerned we should be about this latest trend.

Hedge funds happy at distressed debt

February 2, 2005

Whatever economic crisis our beloved policymakers cook up, you can be sure there will be some business at the end for distressed debt buyers.

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