Anyone monitoring the risks in the global financial system knows that those of us who lend to banks are increasingly asking for some kind of security in order to do so. Issuance volumes for covered bonds have increased and more…
Category Archives: credit risk
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The “safety race”: the systemic implications of the bank asset grab
- Topics
- Bank of England, banking, credit risk, default, Uncategorized
Posted April 26th, 2012
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By nature I would say I have a tendency towards pessimism. Hopefully the odd sleepless night is a price worth paying for a successful career in bond investing, however it does leave me worrying (there’s the pessimism) that I could…
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Following on from Jim’s Sovereign CDS Q&A blog (see here) I came across this chart at zerohedge.com. Whilst I can’t vouch for its accuracy, the chart shows that the actual net amount of outstanding sovereign CDS contracts, relative to outstanding government debts,…
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The market in sovereign credit default swaps has sprung to life over the past year as worries about the health of nations, rather than corporates, have multiplied. Problems in Dubai in December, and Greece right now, on top of a…
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European banks – things may not be what they seem
- Topics
- credit crunch, credit risk, drawdown, ECB, European banks, News
Posted July 10th, 2008
Spectators at recent ECB press conferences may well have come away thinking that there is little, if any, evidence of a credit crunch in Europe. According to the ECB, ‘the growth of bank loans to non-financial corporations has remained very…
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UK rates up to 5.25% – “the risks to inflation now appear more to the upside”
- Topics
- Bank of England, credit risk
Posted January 11th, 2007
The Bank of England has just hiked to 5.25%. Their statement is here. The Bank expects inflation to rise further in the near term, with limited spare capacity in the economy. However they do expect the impact of falling oil…
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Credit Derivatives to Approach $40 Trillion in 2008
- Topics
- CDs, credit risk
Posted December 13th, 2006
Credit default swaps (CDS) , originally conceived by banks over a decade ago to enable the transfer of credit risk are set to approach $40 trillion in size by the end of 2008 according to Deutsche Bank’s credit strategist John…










