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Scandals fraud and losses in the financial markets

Scandals fraud and losses in the financial markets

HSBC is the latest bank to be hit by attempted fraud, which Euromoney was first to report.

Abigail Hofman

Abigail Hofman

We’re here to save the world and we don’t need any questions

November 2007

November 2007

How to succeed in a crisis

Euromoney November 2007

The credit market seizure vindicated a few brave hedge fund managers who had spotted the sub-prime crash coming, positioned themselves deftly, and made huge returns from it. These managers recount the challenges of deploying funds against the long-only herd, outline expectations for worse market disruptions ahead and analyze the public policy responses that threaten the potential returns of many investors now seeking to profit from distress. Peter Lee reports.

Hedge funds

Hedge funds and prime brokers: A rocky patch in a marriage of convenience

Euromoney November 2007

The liquidity crunch of August and September highlighted the intricate relationship between prime brokers and their hedge fund clients. Some managers had their livelihoods threatened by increased margin requirements, while asset valuations were brought into question. Do the two sides of the relationship know each other at all? Helen Avery reports.

Debt markets

Debt trading poll 2007: A year to separate the men from the boys

Euromoney November 2007

The Euromoney debt trading poll is in its second year, and quite a year it has been. Twelve months ago credit houses were hosing their customers with liquidity in a market awash with happy traders. The action had moved out of the cash market and into a thriving derivatives sector. Structured products and indices were flourishing. "You are no longer a bond trader," Henrik Raber, head of credit trading at UBS, was saying to his staff. "You are a trader in multiple asset classes."

Investment-grade bonds: Step back in time

Euromoney November 2007

The collapse of structured finance issuance has significant implications for the financing of assets such as mortgage loans but has also dramatically changed the nature of the traditional investment-grade bond business in America. Alex Chambers reports.

Cash bond/CDS: Necessity breeds invention

Euromoney November 2007

The credit crunch fundamentally altered the cash bond/CDS dynamic. As more and more managers are forced to turn to CDS to hedge their bond portfolios, will we ever see a return to highly liquid cash markets? Jethro Wookey reports.

Middle East

China-Middle East investment links: Opening up the oil road

Euromoney November 2007

The economies of China and the Middle East are expanding at breakneck speed. Over the past 18 months, they have woken up to the importance of investing in each other’s growth. But as Chinese and Middle East investors still find it difficult to cooperate, what can be done to help? Dominic O’Neill reports.

Maha Al Ghunaim: The woman behind Global Investment House

Euromoney November 2007

Maha Al Ghunaim’s rarity factor as a female chief executive in Middle Eastern finance makes her a celebrity. Under her leadership, Global Investment House has become one of the region’s largest investment companies. Here she talks to Euromoney about the secrets of her own and her company’s success.

Securitization

Securitization: The S Word

Euromoney November 2007

Securitization went from being the success story of the capital market to the root of all its evils in just a couple of weeks this summer. Some of those caught in the storm relate the experience to Louise Bowman, who finds out how long it will take to stop being a dirty word.

Covered bonds

Covered bonds and structured covered bonds: Rocked to its core?

Euromoney November 2007

The summer’s financial crisis has helped materialize in the markets a distinction between covered bonds and structured covered bonds that had been a matter of debate for some time. Philip Moore reports.

Asia

Chinese M&A: Under orders to buy abroad

Euromoney November 2007

China’s mergers and acquisitions market is gathering steam after a couple of relatively quiet years. Elliot Wilson reports.

Japan’s stock falls

Euromoney November 2007

While Hong Kong, Shanghai, Singapore and others enjoy unprecedented levels of activity, and London and New York poach more Asian business, the Tokyo Stock Exchange is struggling to recapture the success of its early 1990s’ heyday. Is it too late for Tokyo? Lawrence White reports.

Latin America

Competition heats up in Brazilian investment banking

Euromoney November 2007

As Brazil’s economy and financial markets pick up, Credit Suisse and UBS face growing competition from other foreign banks and domestic contenders. Chloe Hayward reports.

Latin America: Bank consolidation stays at the top of the agenda

Euromoney November 2007

In some parts of Latin America foreign banks continue to head the push for consolidation, but locals are beginning to cross borders. Chloe Hayward reports.

Latin America: Scotiabank wants to make the grade

Euromoney November 2007

Scotiabank has long had an interest in Latin America, with assets throughout the Caribbean and Mexico. Recently Canada’s number two bank has stepped up its presence by buying a bank in Chile, expanding in the Caribbean and announcing plans to open 100 branches in Mexico. Along with this push, the CEO announced the appointment of Anatol von Hahn, who will take over as head of Latin America in January. Chloe Hayward talks to Peter Cardinal, the head of Latin America at Scotiabank, about its plans for the future before he bows out.

Private equity scours the Andes

Euromoney November 2007

Economic growth, stability, market reform and liberalization have led to a Latin American investors into Chile, Colombia and Peru. Leticia Lozano reports.

Emerging Europe

Turkey’s growth defies the pessimists

Euromoney November 2007

Many economic indicators in Turkey remain strongly positive despite internal political crises and flashpoints on the country’s borders. David Judson reports.

Regulation

Mifid: Changing the rules of THE GAME

Euromoney November 2007

Mifid came into effect on November 1 but the market had already been benefiting from the innovation it encourages. Peter Koh reports.

Shared services debate

Shared services debate: Crossing the payments divide

Euromoney November 2007

Shared service centres or payment factories? Corporates have to choose which system works best for them. There is no one size that fits all, while good working partnerships with banks are as important as ever.

Debt market news & analysis

e-trading: Dealers hedge themselves

Euromoney November 2007

TradeWeb sells minority stake to nine banks, as LiquidityHub gets going.

RBC brings Canadian covered bonds to the fore

Euromoney November 2007

Royal Bank of Canada has launched its €15 billion covered bond programme with a jumbo issue in the European covered bond market. The deal is Canada’s first ever covered bond.

EU government bond trading: MTS approves non-banks on govvie platform

Euromoney November 2007

Debt market round up: First loan credit event auction held

Euromoney November 2007

Debt market round up: RBC hires MacBain from TD

Euromoney November 2007

Debt market round up: BNPP builds DCM FIG

Euromoney November 2007

Structured finance news & analysis

Rating agencies: Capable or culpable?

Euromoney November 2007

In front of a US Senate committee, the agencies are indignant while investors claim they are focusing on the wrong signals.

Credit derivatives: Trading backlog back again

Euromoney November 2007

What was hailed as a great success for the credit derivatives market, the tackling of the unconfirmed transaction backlog, has turned out to be far from a mission accomplished.

RMBS: The true meaning of true sale

Euromoney November 2007

The high quality of its mortgage assets might not be enough to save Northern Rock’s Granite master trust.

Credit derivatives: LCDX tranches launch

Euromoney November 2007

Structured finance market round up: M-LEC to the rescue

Euromoney November 2007

Structured finance market round up: Deutsche appoints European SPG co-heads

Euromoney November 2007

Foreign exchange news & analysis

NFA regulation: Fight the good fight

Euromoney November 2007

The NFA is seeking to up the ante in its fight against the bucket shops that tarnish the US retail FX market.

Russia: Rouble held back by settlement

Euromoney November 2007

The news that spot rouble trades have taken place electronically on EBS and LavaFX between Russian and foreign banks has been taken by some observers as proof that the currency has taken a significant step towards full convertibility. However, the deals mask the fact that Russia’s settlement system is still a real impediment to the rouble’s wider acceptance and is harming the government’s hopes that it will one day be accepted as a reserve currency.

Currency trading: The dollar: it’s down but not yet out

Euromoney November 2007

FX market round up: UniCredit feels its trading force

Euromoney November 2007

FX market round up: Icap moves into post-trade

Euromoney November 2007

Equity markets news & analysis

IPOs: ECM issuance to gain from credit market weakness

Euromoney November 2007

Long/Short investing: Quant funds take shine off 130/30 performance

Euromoney November 2007

Many have struggled to beat regular equity market returns, especially after liquidity crisis, says research.

Convertibles: Middle East and Africa slow shrinking of EMEA equity-linked market

Euromoney November 2007

Depositary receipts: OTCQX in the pink

Euromoney November 2007

Spate of high-profile delistings by blue-chip European companies boosts Pink Sheets’ premium market segment.

Emerging market equities: Secondary listing lift for EM companies

Euromoney November 2007

A new study confirms the substantial benefits of a depositary receipt programme.

Equity market round up: The month in numbers

Euromoney November 2007

Alternative investments news & analysis

Australia: Funds foster in-house selection

Euromoney November 2007

A growing number of superannuation funds in Australia are turning away from funds of hedge funds and external advisers to set up hedge fund manager selection capabilities in house.

Credit crisis: Enhanced cash funds rebut slurs

Euromoney November 2007

The credit crisis has forced US enhanced cash funds, which seek to better money market returns by taking on slightly higher levels of risk than regular money market funds, to fight to secure their reputation.

Hedge fund strategies: Don’t shoot the quant guys!

Euromoney November 2007

Quantitative investment strategies are valid, says report.

AI profile - Jon Schotz, Saybrook: Making money from a little local knowledge

Euromoney November 2007

Saybrook’s Tax-Exempt Opportunity Funds are making money by investing in distressed and defaulted municipal bonds. CIO Jon Schotz talks to Helen Avery about the growth of opportunities in the sector.

AI market round up: A board for systemic risk?

Euromoney November 2007

AI market round up: Risk models too simple

Euromoney November 2007

According to Olivier LeMarois, CEO of Riskdata, equity market neutral funds’ reliance on one risk model for both trading and risk management exacerbated their losses in the summer.

AI market round up: HFWG consultation paper released

Euromoney November 2007

Hedge funds news & analysis

Hedge Funds: Bizarre case of Florian Homm puts the spotlight on AIM

Euromoney November 2007

The contrast with US regulation could hardly be more stark, writes Neil Wilson.

Hedge Funds: Data

Euromoney November 2007

Asia news & analysis

India: PN rumour spooks market

Euromoney November 2007

India’s booming stock market was given a thorough hiding on October 17. Rumours had been swirling for days that the country’s market regulator, the Securities and Exchange Board of India (Sebi), was planning to ban the use of participatory notes (PNs), which allow any foreign institution to invest directly in India-listed stocks without having to be registered in the country as a foreign institution.

Japan: Citi buys troubled local broker

Euromoney November 2007

Singaporean private banking: The moral maze of privacy

Euromoney November 2007

Singapore has made great strides as a private banking centre, attracting almost every bank that matters to set up shop there to service the region’s rich. But recent developments in Burma (Myanmar) suggest that the city state’s financial success has come with a string attached to it: increasing scrutiny of its morality.

Asian market round up: On a through train

Euromoney November 2007

Hong Kong’s notoriously volatile investors are again set firm in headless-chicken mode (the bullish version). Ever since China’s foreign securities regulator, Safe, announced in August that mainland investors would "soon" be allowed to begin throwing their hard-earned savings at Hong Kong-listed stocks, the local Hang Seng index has been on a superhuman tear.

Latin America news & analysis

Capital markets: Debt still underdeveloped

Euromoney November 2007

Only Uruguay and Bolivia have active corporate bond markets.

Mexico: Bourse tries to boost issuance

Euromoney November 2007

The Mexican stock exchange, the Bolsa Mexicana de Valores, has announced plans to go public before the end of the year as it attempts to lead by example in the poorly performing Mexican IPO market.

Panama Canal expansion will attract investment flows

Euromoney November 2007

The expansion of the Panama Canal is set to draw in banks from far and wide because of the increased investment opportunities that the programme will have on all economic sectors in the country, according to bankers and analysts in the region.

Infrastructure finance: Mexico passes toll road financing test

Euromoney November 2007

One of Latin America’s biggest challenges is financing its massive infrastructure needs, and nowhere is this more pressing than in Mexico, especially in toll road development.

Latin America market round up: Chavez watch

Euromoney November 2007

Latin America market round up: Two issue in Mexican pesos

Euromoney November 2007

Latin America market round up: RBTT team up with RBC

Euromoney November 2007

EEMEA news & analysis

Dubai: Is real estate riding for a fall?

Euromoney November 2007

Qatar Investment Authority: Minister says sovereign funds are transparent

Euromoney November 2007

A senior official in the Qatar government has hit back at claims that sovereign wealth funds lack transparency. Finance minister Yousef Hussein Kamal says that his country’s fund, Qatar Investment Authority, is an open, long-term investor, which should be welcomed by other governments.

Emerging Europe: How to beat the dollar blues

Euromoney November 2007

Russia: Lyxor offers first UK Russia ETF play

Euromoney November 2007

CIS Banking: Kazakhstan feels the pinch

Euromoney November 2007

Hedge funds: Evolvence to open Gulf’s first hedge fund

Euromoney November 2007

Evolvence Capital, a Dubai alternative investment company, is on track to raise $150 million for what it claims is the region’s first hedge fund when it closes to investment next month.

Macedonia: Skopje seeks smarter solution

Euromoney November 2007

Egypt: Making the case for SMEs

Euromoney November 2007

EEMEA market round up: Bank Saint Petersburg storms winter market

Euromoney November 2007

EEMEA market round up: Georgia on bankers’ minds

Euromoney November 2007

EEMEA market round up: VTB secures its future

Euromoney November 2007

Market leaders

Liquidity risk: Jump to it

Euromoney November 2007

How do you price liquidity risk?

Europe’s glass jaw: How did a US crisis hit Europe hardest?

Euromoney November 2007

Leaving to one side the continuing debate about the causes of the credit crunch and how best to cure the dislocation in money markets, the relative inadequacies of European capital markets, especially in fixed income, are undisputed.

Unsafe as houses

Euromoney November 2007

Proposed US legislation shows that patience has snapped with the markets.

Credit emerges uncrunched

Euromoney November 2007

Interest in emerging market high-yield debt is at an all-time high.

Hedge funds: Breadth leads to destruction?

Euromoney November 2007

That a third of hedge fund assets are invested in multi-strategy funds has implications for the wider market when funds need to sell off their most liquid assets.

Light shines on liquidity facilities

Euromoney November 2007

Liquidity facilities have come out of the shadows, and many are surprised by what they really look like.

Transparency and regulation: An opportunity missed

Euromoney November 2007

Market participants will live to regret not getting their own houses in order.

Taiwan: The dilemmas of nationalism

Euromoney November 2007

In March, Taiwan’s voters will go to the polls, and as ever the issue of cross-strait relations with mainland China will be key. And few groups will have more at stake than Taiwan’s banking sector.

Columns

Editorial: Stan O’Neal’s legacy to Merrill Lynch

Euromoney November 2007

The CEO suites of Wall Street have their first vacancy sign since the world learnt what sub-prime means.

Abigail Hofman: "You’re fired."

Euromoney November 2007

"You’re fired" is the new "You’re free".

Inside Investment: Doomwatch

Euromoney November 2007

Sub-prime slime and the credit crunch have diverted attention from global imbalances. However, any dollar rout would be ugly. Neglect is no substitute for policy.

Against the tide: No end in sight for the credit crunch

Euromoney November 2007

Global liquidity is set to keep contracting and inflation will keep on increasing despite a growth slowdown. There is a serious risk of global recession in 2008.

Front end

IMF-World Bank: Snakebite and Bok

Euromoney November 2007

They are serious events but the IMF-World Bank meetings always leave plenty of room for frivolities. Investment banks compete to lay on the most lavish parties. Huge amounts are spent to attract the great and the good.

When Cornell comes to Cavtat

Euromoney November 2007

We don’t usually like to blow our own trumpet at Euromoney, but our Regional finance and investment conference for south east Europe, now in its seventh year and still going strong, is without doubt one of the landmark shindigs in the region. And not just for the sun-drenched charms of the ridiculously picturesque fishing village of Cavtat in Croatia.

France, Europe’s financial centre: Sacré bleu!

Euromoney November 2007

France is looking to contest England’s supremacy in the financial world by challenging London’s claim to be Europe’s financial centre.

Stressing a point

Euromoney November 2007

Research released in mid-October came to the far-from-shocking conclusion that two in five of workers in the UK’s financial services sector are stressed.

Rugby World Cup: SG’s prophetic menu

Euromoney November 2007

Quotes of the crunch

Euromoney November 2007

Off the record

Euromoney November 2007

IMF/World Bank awards 2007

Euromoney November 2007

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