Monthly Archives: January 2012

Phantom Costs to the Swap Dealer Designation and OTC Reform

January 22, 2012 – 10:34 pm

The CFTC is working to finalize the rule defining swap dealers and major swap participants. Under the Dodd-Frank financial reform, the rules governing operation of the OTC derivative market operate in large part through codes of conduct imposed on these entities. As reported most recently by Silla Brush at Bloomberg, a number of companies are [...]

By John Parsons | Posted in cash balances, commodities, Dodd-Frank, OTC reform, pricing risk | Comments (5)

Yelling over Credit Lines

January 20, 2012 – 10:03 am

After arduous negotiations and risking approaching a dangerous zone, last week, Yell, the publisher of the yellow pages, reached an agreement to buy back £159.5m in debt. The company has seen continued decline in print revenue from competition of internet search engines. Struggling under a £2.6bn debt burden, it became clear last year that the [...]

By Antonio Mello | Posted in credit risk, debt/liabilities | Comments (0)

Climate apples and oranges

January 18, 2012 – 8:35 am

Monday’s post discussed a proposal by Vikram Pandit, the CEO of Citigroup, calling for a comparison of the results produced by risk models across different banks when evaluating a standardized “hypothetical” portfolio of assets. Exercises like this are standard fare in many research fields where modeling encompasses a broad array of complicated issues, and there [...]

By John Parsons | Posted in exposure, measuring risk, scenario analysis | Comments (0)

Banking apples and oranges

January 16, 2012 – 8:20 am

Vikram Pandit, the CEO of Citigroup, used an opinion piece in last week’s Financial Times to make an interesting proposal on risk disclosures: banks and other financial institutions should be required to report how their internal modeling assesses the risk in a “benchmark” portfolio. Regulators would define the contents of this hypothetical portfolio, and banks [...]

By John Parsons & Antonio Mello | Posted in measuring risk, regulation, scenario analysis | Comments (1)
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