Standard & Poor’s
Australian banks heading for advanced IRB
Australia’s four major banks are making good progress in implementing strategies and systems for Basel II, with all four banks targeting the advanced internal ratings-based (IRB) approach, according to rating agency Standard & Poor’s (S&P).
S&P alters its core earning methodology
Standard & Poor’s has reacted to criticism of its corporate rating methodology by changing its system for evaluating corporate earnings in the future. The New York-based rating agency will focus on core earnings – roughly defined as after-tax earnings…
Hedge funds of funds may offer CDO opportunity, says S&P
Standard & Poor’s (S&P) today predicted that collateralised debt obligations (CDOs) of hedge fund of funds will be the next sector to fuel growth in alternative investments.
Gaining an edge from Basel
The recent recommendations of the Basel Committee are set to usher in a period of upheaval for many participants in the banking sector. Standard & Poor’s Anthony Albert looks at how to gain a competitive advantage in credit risk management in the light…
Default levels worst on record, says S&P
The first quarter of 2002 was the worst ever recorded for corporate defaults, said rating agency Standard & Poor’s (S&P).
Calls mount for bank and rating agency disclosure on Enron
Leaders of the US House Energy and Commerce Committee yesterday called on 10 investment banks and three credit-rating agencies to turn over records linked to Enron. Questions to the banks focused on loans to Enron and whether future business with Enron…
Changes afoot at rating agencies
Rating agencies are under fire once again, this time for failing to anticipate Enron’s bankruptcy. But they are looking to improve their methodology. What do the changes mean for banks that will have to rely on their ratings under Basel II?
Swiss Re warns on losses
Swiss Re, one of the world’s largest reinsurance groups, yesterday warned investors it expects to report a Sfr200 million ($115 million) loss when earnings are released in April. But the firm’s management will recommend an unchanged dividend of Sfr2.5…
Credit model evaluation
With the new Basel Capital Accord scheduled for implementation in 2005, banks are having to evaluate the credit scoring models that will enable them to meet the minimum standards for Basel’s internal ratings-based (IRB) approach. Selecting an appropriate…
Japan resumes NPLs reduction drive
The Resolution and Collection Corporation (RCC), entrusted by the Japanese government to help reduce Japanese banks’ major non-performing loan (NPL) problems, has concluded its first securitisation deal this year. An RCC spokesperson said the transaction…
Synthetics up on back of credit derivatives growth
Increased familiarity with credit derivatives is leading to a greater appetite for synthetic securitisation, according to the two main ratings agencies, Standard & Poor's (S&P) and Moody's.
Enron exposure hurts JP Morgan credit position
Rating agency Standard & Poor’s (S&P) has placed JP Morgan Chase on negative ratings outlook following the financial institution’s unveiling of a $322 million loss in fourth-quarter 2001, in part caused by its exposure to failed US energy company Enron.
Innovative CDOs set to lead the way in 2002
Innovatively structured collateralised debt obligations (CDOs) will spur the growth of structured finance products in 2002, according to a report by rating agency Standard & Poor’s (S&P).
FASB: loan commitments must be treated like derivatives
The US Financial Accounting Standards Board (FASB) ruled last month that some unfunded loan commitments made by banks should be treated like derivatives and marked-to-market. The ruling came nearly nine months after Goldman Sachs first proposed the…
S&P states over $3 billion of credit derivatives written on Enron
Direct credit derivatives exposure to Enron, which has filed for chapter 11 bankruptcy, could total $3.3 billion, according to rating agency Standard & Poor’s.
Stepping up for Basel
South Korea’s banks stand to be the hardest hit by the new Basel recommendations, forcing institutions to focus on improving risk management operations. Vikki Kunz reports from Seoul.
Algo includes S&P for Basel II
Algorithmics is strengthening its credit risk management offering as demand grows for more comprehensive credit solutions. It is integrating a number of Standard & Poor’s credit data products with its analytical tools and developing a new module to help…
Building for Basel
The 2005 implementation date for the new Basel II Accord – already postponed by a year – is looming large. Whilst the banking sector is steadily gearing up for the proposed changes, there are fears that some institutions may be left behind.
Balancing belief and science
Japan’s banks are protesting against Basel’s proposed operational risk capital charge. They claim their risk levels are much lower than those of banks from other countries, but there is little hard data available to back this claim up. Anthony Rowley…
Insurers plan operational risk proposals for early November
LONDON - Leading insurance firms planned to have ready by early November their proposals for using operational risk insurance within the terms of the Basel II banking accord, insurance industry sources said as Operational Risk went to press.
S&P unveils new ratings model
International rating agency Standard & Poor's is to introduce a new partial guarantee model to help companies seeking to upgrade their credit ratings. The model marks a move away from the weak-link rating approach currently being used, where corporations…
S&P unveils new ratings model
International rating agency Standard & Poor's is to introduce a new partial guarantee model to help companies seeking to upgrade their credit ratings. The model marks a move away from the weak-link rating approach currently being used, where corporations…
S&P offers CDO manager ratings on the Web
International debt rating agency Standard & Poor’s (S&P) has begun offering evaluations of collateralised debt obligations(CDOs) managers for free on its website. While the move appears timely given the current turbulent environment for non-investment…
Preparing for the worst
Small and medium-sized banks in the US and Europe are bracing themselves for Basel II. Gallagher Polyn examines how these institutions plan to adapt to the new Accord.