Banks and investors have already criticized Europe for diverging from agreed international standards and have warned that the European proposal could increase the cost of trading over-the-counter derivatives, such as interest rate swaps, in Asia by hundreds of billions of dollars, threatening systemic stability and potentially forcing EU banks out of the Asian OTC derivatives markets.» Read More
TOKYO, April 15- Japanese government bond prices were little changed on Tuesday, erasing small earlier losses after an auction of five-year JGBs drew solid bids. The 10- year JGB futures ticked up 0.04 point to 145.09, coming back from the day's low of 144.99.
TOKYO, April 14- Japanese government bond prices are steady to slightly weaker on Monday with some minor position adjustments ahead of this week's auctions. The 10- year JGB futures stood flat at 145.01 and the 10- year cash bond yield was untraded, with 0.60 percent seen as a strong support for the yield.
LONGER-DATED TREASURY BOND FUTURES ADD TO EARLIER GAINS, HIT CONTRACT HIGHS.
Warren Buffett famously referred to derivatives as "financial weapons of mass destruction," but unless we accept that residential mortgages are too, the phrase glorifies them into something they are not.
Clever finance critters are fleeing from swaps to futures, escaping the new regulatory regime that was a center-piece of Dodd-Frank.
After the unveiling of Libor rate-rigging practices among banks, eyes are turning to other markets, worrying that the manipulation would not be limited to Libor rates, the New York Times reports.
Hundreds of employees at big firms, some part of special teams, will be on standby this Sunday, awaiting the results of Greece’s pivotal election. The New York Times reports.
Conflicting signs are emerging in Washington over whether JPMorgan Chase’s surprise trading loss will spur tighter regulation on Wall Street, The New York Times reports.
JPMorgan’s next move depends on what happens in the credit markets. If investors become fearful about companies’ prospects , JPMorgan’s bet could face even bigger losses, The New York Times reports.
The triggering of insurance payments on Greek sovereign debt should be a "non-issue" for the markets, as they will happen in an orderly fashion, a representative of the International Swaps and Derivatives Association (ISDA) told CNBC on Monday.
The financial system could face a test this week as industry officials debate a provision of the Greek bailout, the New York Times reports.
Interest rate swaps are derivative instruments commonly used by sophisticated investors to allow cash flows on interest-earning securities or loans to be exchanged. CNBC explains.
Bankers believe that an additional disclosure requirement, relating to previously unpublished details of banks’ credit exposures, could trigger approaches for credit portfolios from specialist buyers. The FT reports.
The Securities and Exchange Commission is investigating Merrill Lynch’s sale of a complex mortgage-related security it created for Magnetar, an Illinois hedge fund, and the collateral manager involved in the deal. The FT reports.
Conflicts of interest, excessive risk-taking and failures of government oversight triggered the financial crisis and helped push the country into the deepest recession since the Great Depression, concludes a new report by the U.S. Senate.