The asset-backed commercial paper (ABCP) market, which started modestly as a way for banks to move assets off their balance sheet, using special purpose vehicles known as conduits, is today among the most innovative and complex financial sectors, often supporting entirely synthetic transactions. But its very success is arousing concern among some close observers.

The fight to sell government euro bonds has never been fiercer. The French and Germans are battling it out for benchmark status while other eurozone countries are increasing liquidity and issuance size. Troubled equity markets make it all very attractive to investors.

Forget worrying about corporate collapses. The growth of PFI financing is playing havoc with public money. Eventually an Enron-style disaster will be rerun on a sovereign balance sheet.

Melvyn Westlake says the legal row between Nomura and CSFB could result in more transparency in the world of credit derivatives.

Banks are benefiting from an increase in corporate sector demand for alternative ways of raising finance while capital markets are effectively closed. 

JP Morgan Chase thought it had its Enron risks insured. Now it is fighting a legal battle to reclaim the money. The case raises wider questions about the effectiveness of credit insurance and the much-heralded convergence between banking and insurance.

The asset-backed commercial paper (ABCP) market, which started modestly as a way for banks to move assets off their balance sheet, using special purpose vehicles known as conduits, is today among the most innovative and complex financial sectors, often supporting entirely synthetic transactions.But its very success is arousing concern among some close observers. The market's role in shifting risk, often to exploit anomalies in the regulatory treatment of the banks' capital, looks distinctly uncertain when the rules change in three years time under current proposals.

If your image of sub-prime is of penal interest rates and unsavoury collection methods, think again. The sector is on its way to respectability and boosting banking profits. Nick Kochan reports

With multi-billion dollar acquisitions to finance, banks need inexpensive ways to replenish their capital. Tax and cost-effective, preferred shares are the answer to their prayers, but convincing the regulators to count them as Tier One can be challenging. Jules Stewart reports on the twists and turns to keep the issuers and the authorities happy.

Melvyn Westlake talks to the protagonists behind Fitch’s challenge to the two giant US rating agencies.