| Student Loan Risk: So Far, So GoodU.S. student loans have exhibited characteristics of a ticking time bomb. Although private lenders to the sector seem to have risks well under control, there are some “what ifs?” to worry about. |
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| Lien Priority Issue Haunts the RMBS MarketIf current efforts to correct lien inversion fail, the U.S. government could remain the main source of mortgage financing for years to come, and investor uncertainty may bleed into other asset classes. |
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| Still More Scrutiny for Credit Rating AgenciesLegal actions such as a probe launched by New York State AG Eric Schneiderman suggest that credit rating agencies may be entering a phase of even closer scrutiny. |
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| Stable and Reliable? An analysis of the long-term ratings published by credit rating agencies shows them performing very well when rating corporate debt, but less so when it comes to structured finance products. |
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| Swap Futures Gain Support from Major Market PlayersSwap futures such as Eris Exchange’s Flexes and Standards have gained support from major market participants as OTC derivatives come under new clearing requirements. |
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| U.S. Forex Clearing Rules Don’t Answer All QuestionsTreasury’s long-awaited rule on OTC foreign exchange transactions pulled no surprises, but in instituting clearing requirements for some transactions and margin requirements for others, it may usher in new risks. |
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| Annuities: A Risk-Reducing Innovation on the HorizonU.S. insurance companies have yet to extend the concept of risk-sharing through syndication to annuities, but industry experts see it as a logical next step. |
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| Going-Concern Rating and Economic Analysis of Insolvency RiskGoing-concern ratings could help to bridge the gap between audit and credit ratings data in the financial reporting supply chain in a rapidly evolving world. |
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| Public Television and the New Swap Dealer DefinitionA recent Frontline documentary on the financial crisis told viewers that, under Dodd-Frank, 85% of all derivative players will remain outside the reach of regulators. Sam Peterson of Chatham Financial says that those who have been paying attention know better. |
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| Exchanges Eye Exotic OptionsDerivatives exchanges are seeking to list versions of ever more exotic products, in part because of counterparty risk concerns, but also because banks may be motivated to participate in other than OTC trading of these instruments. |
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| The Uneven Global Playing Field of OTC Derivatives ReformDivergent regulations being adopted in the U.S. and Europe could have a significant impact on counterparty risk, liquidity and capital requirements. |
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| Unflinching on MF Global, Ratings Upstart Gains FollowingRapid Ratings has set itself apart from the Big Three in the field with an approach that does not require armies of human analysts -- and eschews what its CEO calls "the Corzine effect." |
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| Implied Economic Capital for Counterparty Credit RiskUnder Basel II, financial institutions are expected to calculate economic capital for significant risks. In the case of credit and market risk, there are well-established models, but counterparty credit risk is another matter. |
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| Metarisk: A Novel Risk Management ApproachMetarisk introduces a fourth risk dimension to the credit risk management process -- what will really transpire if and when risk materializes, and what we should do about it now. |
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| Lukken Goes Back to the CapitalThe Futures Industry Association is tapping ex-regulator Walter Lukken, an expert on derivatives markets, risk and regulation, as the replacement for CEO John Damgard. |
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