A plethora of new products in the credit derivatives market means that investors, and sometimes bankers, struggle to keep up with developments. Natasha de Teran asks why some products take off easily while others strain to build traction.
Credit derivatives have been the hottest and fastest growing sector of the over-the-counter (OTC) derivatives market for some time now, drawing in players in ever-greater numbers.
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But will it fly . . . ?
April 4, 2005Trend setters bag repo rewards
February 2, 2005
Banks could profit from the burgeoning repo market if their collateral management is sophisticated enough, yet few have attempted to integrate this function. Natasha de Teran reports.
With the increasing focus on risk-reduction and the imminent arrival of Basel II, the fast-growing repo market – in which the seller of securities agrees to buy them back at a specified time and price – is likely rise to prominence and expand beyond recognition.
Banks that are already at the forefront of secured lending will profit from this growth but, as more assets are added into the acceptable collateral pool, sophisticated collateral management capabilities will become imperative.
Banks defend OTC territory
December 1, 2004
Exchanges and clearing houses, faced with compressed margins and increasing competition, are looking outside traditional sectors for growth opportunities and delving into over-the-counter markets. How are banks turning this threat to their advantage? Natasha de Teran investigates.
Gone are the days of strictly marked territories, when exchanges and their clearing houses had a guaranteed stronghold on specific markets. The concept of these being “sleepy” utilities has not yet faded but both are starting to change the ways they do business – even, in some cases, by encroaching on areas that used to be the unchallenged preserve of banks or brokers, their principal customers.
Reuters and CME’s marriage
July 2, 2004Reuters’ hook-up with the Chicago Mercantile Exchange has been welcomed by the market. More importantly, it marks the start of another evolution in FX trading, as William Essex reports.
The need for speed
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Could Europe outpace the US in the commercial paper stakes?
December 2, 2003
Mark Pelham looks at the rise of the euro commercial paper
market and whether it can sustain its phenomenal rate of growth to
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Electronic platforms are testing customer-to-customer market
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eSpeed and TradeWeb win bond poll
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