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Economic Risk - Agricultural Futures under the Spotlight
The futures markets have often become a center of controversy in periods of unusual agricultural commodity prices. In 1984, for example, farmers angered by low futures prices protested outside the Chicago Board of Trade and demanded criminalization of futures trading.
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Headline News, Wednesday, July 9, 2008
July 8: Interview - Dispatches From the Front Line
In this dispatch from the front line Dr. David M. Rowe, Director of the Professional Risk Managers’ International Association (PRMIA) shares his insights on risk management and its role in corporate defense with Sean Lyons.
July 8: Market Risk - Federal Reserve and SEC Issue Memorandum of Understanding to Deepen Information Sharing and Cooperation
Securities and Exchange Commission Chairman Christopher Cox and Board of Governors of the Federal Reserve System Chairman Ben Bernanke yesterday signed a memorandum of understanding (MOU) between the two agencies that will deepen their information sharing and cooperation, permitting both agencies to better perform their responsibilities.
July 8: Industry Risk - New Help For People Managing Money Worries
Action to give people more support to tackle their money concerns is being announced today by Yvette Cooper MP, Chief Secretary to the Treasury and Hector Sants CEO of Financial Services Authority (FSA).
July 8: Industry Risk - FSA Bans and Fines Mortgage Broker £129,000 For Involvement in Mortgage Fraud
The Financial Services Authority (FSA) has banned a mortgage broker and fined her £129,000 after finding she had been involved in numerous fraudulent mortgage applications. This is the first time the FSA has both banned and fined a mortgage broker for mortgage fraud.
July 8: Market Risk - Businesses File Bankruptcy at Faster Rate
The softening economy and the collapse of the housing market caused U.S. businesses to file for bankruptcy protection at a higher annualized rate than individuals, according to data compiled from June court records.
July 7: Commentary - Good Banks, Bad Banks
News reports about Lehman Brothers (NYSE:LEH) possibly being sold to Barclays (NYSE:BCS) actually pushed the firm's valuation down by the close yesterday. To us, the implosion of houses such as Bear, Stearns, LEH and, yes, eventually even Goldman Sachs (NYSE:GS) suggests that this pure "agent" institutional dealer business model may be doomed. Are the other heavy users of leverage residing in hedge fund land next?
July 7: Commentary - Given the Structure of the Eurozone, Smaller Economies Will Never Be Managed Effectively
Last week, the European Central Bank increased its main interest rate by 25 basis points to 4.25 percent in order to control the inflationary risks that members of the Eurozone are bound to face given the unexpected spikes in oil and food prices. Of course, the overall economic growth of the Eurozone has also been quite impressive, which could mandate such a move. According to Eurostat, Eurozone's (the EA15) GDP grew by 0.8 percent in the first quarter of 2008, compared with the previous quarter. The key component, which boosted the overall averages, was Germany's first-quarter growth figure of 1.5 percent, which is extremely positive.
July 7: Economic Risk - Price Surge Driving Some Countries Close to Tipping Point
The impact of surging oil and food prices is being felt globally but is most acute for import-dependent poor and middle-income countries confronted by balance of payments problems, higher inflation, and worsening poverty, a new IMF study warns.
July 7: Operational Risk - SEC Publishes Regulatory Actions to Streamline SRO Rule Filing Process
The Securities and Exchange Commission last week published a final rule and new interpretive guidance to improve the rulemaking process for exchanges and other self-regulatory organizations (SROs) that operate under SEC oversight.
July 7: Industry Risk - Survey Shows New Guidance from SEC and PCAOB Having Positive Impact on Sarbanes-Oxley Compliance Efforts
Is it possible that Sarbanes-Oxley compliance is becoming a little easier? According to a new survey from Protiviti Inc., organizations last week are realizing tangible benefits from updated regulatory rules and guidance pertaining to Section 404 of the Sarbanes-Oxley Act that were issued in May of 2007 by the Public Company Accounting Oversight Board (PCAOB) and U.S. Securities and Exchange Commission (SEC).
July 7: Market Risk - Chart of the Day
For some perspective on the current state of the stock market, last week's chart presents both the long-term and intermediate-term trend of the Russell 2000 (small-cap stocks). As the chart illustrates, the Russell 2000 has been and continues to trade within its five-year trend channel -- though support (solid green line) is currently being tested. It is worth noting, however, that the Russell 2000 has traded and continues to trade within the confines of a downward sloping trend channel that has been in existence since mid-2007.
July 7: Market Risk - US Mortgage Rates Reverse Trend and Fall Off This Week
Freddie Mac (NYSE:FRE) last week released the results of its Primary Mortgage Market Survey (PMMS) in which the 30-year fixed-rate mortgage (FRM) averaged 6.35 percent with an average 0.6 point for the week ending July 3, down from last week when it averaged 6.45 percent. Last year at this time, the 30-year FRM averaged 6.63 percent.
July 3: Interview - Dispatches From the Front Line
In this dispatch from the front line Lynn Lawton, the International President of the Information Systems Audit and Control Association (ISACA) shares her insights on information technology (IT) and its corporate defense requirements with Sean Lyons.
July 3: Industry Risk - ISDA Announces New Step Towards Single Name Portfolio Compression
The International Swaps and Derivatives Association, Inc. (ISDA) yesterday announced the conclusion of the Request for Proposal (RFP) selection process for "portfolio compression." Portfolio compression, which will focus on single name trades, is a process that reduces the overall size and the number of line items in credit portfolios, without changing the risk parameters of the portfolio.
July 3: Market Risk - Industry Take Further Steps Toward Improving Transparency
Nine European and global trade associations yesterday released Ten Industry Initiatives to Increase Transparency in the European Securitisation Markets in response tothe European Council of Finance Ministers’ (ECOFIN)call, in its October 2007 Roadmap, to “enhance transparency for investor, markets and regulators” by “mid-2008”.
July 3: Country Risk - PBN Releases Quarterly Review of Russian & CIS IPOs
In Q2 2008 capital raised through initial public offerings (IPOs) by companies from Russia and other nations of the Commonwealth of Independent States (CIS) doubled from Q1, although the number of issues and amounts raised were still down compared to the same periods in 2005 – 2007, according to research issued by The PBN Company, the strategic communications consultancy.
July 3: Industry Risk - Moody’s Investors Service Announces Actions After Review of European CPDO Ratings Process
Moody’s Investors Service, the credit rating agency unit of Moody's Corporation (NYSE: MCO), yesterday announced that, following a comprehensive review of its ratings process for European constant-proportion debt obligations (CPDO), it has initiated employee disciplinary proceedings and accelerated measures to strengthen its rating and monitoring processes.
July 3: Energy Risk – Heat of Battle
Utilities are now in the heat of battle. While they would like to maximize their sales, they must now persuade their customers to save energy. It's a quest that will help defer investments in expensive and contentious infrastructure and in doing so, prevent the release of some harmful emissions.
July 2: Credit Risk - Credit Index Shows Further Decline in Global Credit Quality in June
Kamakura Corporation reported Tuesday that its monthly index of troubled public companies showed deteriorating global credit conditions in June. The index, which showed rare improvement in May, has now deteriorated in 10 of the previous 11 months. Kamakura reported that troubled companies in June make up 13.2 percent of the global public company universe, up from 12.7 percent in May.
July 2: Market Risk - SEC Publishes Proposals to Increase Investor Protections by Reducing Reliance on Credit Ratings
The Securities and Exchange Commission yesterday published for public comment proposed rule changes to make the limits and purposes of credit ratings clear to investors and ensure that the role assigned to ratings in SEC rules is consistent with the objectives of having investors make an independent judgment of credit risks.
July 2: Industry Risk - High Fuel Prices Hit Global Automakers As Consumers Choose Cheaper Cars, Says Report Card
Deteriorating U.S. industry conditions and worldwide soaring gasoline prices are increasingly putting pressure on global automakers, said Standard & Poor's yesterday in its "Industry Report Card: Road Worsens For Global Automakers As High Gasoline Prices Start To Bite".
July 2: Market Risk - June Credit Derivatives Report
Credit default swaps for the banking and financial services sector saw the most active trading in the US, led by Lehman Brothers, Merrill Lynch, CIT Group, Countrywide Home Loans and Citigroup according to GFI, a leading inter-dealer broker for credit derivatives*. Fixed line telecoms rounded out the most active list.
July 2: Industry Risk - FSA Fines IT Professional £85,000 For Market Abuse
The Financial Services Authority (FSA) has fined John Shevlin £85,000 for market abuse. John Shevlin was employed as an IT technician at the Body Shop International plc ("The Body Shop"). On 10 January 2006 he established a short position equivalent to 80,000 Body Shop shares through a Contract for Difference ("CFD"), in effect betting that the share price would fall.
July 2: Energy Risk - The Big Picture, Can You See It?
UtiliPoint has had the opportunity to meet with several of the business leaders from utilities, vendors and outsourcers to ask their opinions on the changing environment in the utility sector and what it means to their organization. When asked the most important need facing the industry, the head of one vendor gave a simple, but astute, answer—"the industry needs people who can see the big picture."
July 1: Industry Risk - Companies Aren’t Prepared for XBRL
An exclusive new survey from Compliance Week suggests that many publicly held companies are barely aware of XBRL, the financial reporting technology the Securities and Exchange Commission is poised to impose on Corporate America later this fall.
July 1: Operational Risk - APRA releases draft requirements for the use of internal models by general insurers
The Australian Prudential Regulation Authority (APRA) has yesterday released a consultation package that sets out its draft prudential requirements for the use of the Internal Model-based Method (IMB Method) for determining the Minimum Capital Requirements (MCR) of general insurers.
July 1: Market Risk - GFI Launches Nymex CAPP Look-Alike
GFI Group (Nasdaq: GFIG) has launched a Central Appalachian (CAPP) coal contract. It is a Nymex look-alike and can therefore be cleared via NYMEX Clearport.
July 1: Market Risk - IAIS to Develop Standards For Market Conduct
The International Association of Insurance Supervisors (IAIS) yesterday announced the formation of a new Market Conduct Subcommittee, charged with developing international supervisory standards on insurers’ behaviour in the marketplace. The subcommittee will build on existing work on market conduct.
July 1: Industry Risk - CME Group and NASDAQ OMX Group Announce Expanded Long-Term Partnership
CME Group (NYSE: CME)(NASDAQ: CME) , the largest and most diverse derivatives exchange and leading provider of equity index futures and options, and The NASDAQ OMX Group, Inc. (NASDAQ: NDAQ), yesterday announced they will expand their highly successful long-term partnership through two new initiatives.
July 1: Market Risk - Monthly US Economic and Fed Policy Report
View summary of key economic indicators. See detail behind Real Growth Index (RGI) and 'E/M' Index (used in daily Fed Funds Report). RGI, designed to proxy bond market perceptions, updates monthly (vs. quarterly GDP), identifies recessions precisely, and correlates with other indices (e.g., ISM). Multivariate model projects RGI 3 months out. 'E/M' section reveals conditions empirically consistent with FOMC rate moves. Charts show 'E/M' history against Fed moves; RGI, money, and prices since 1960; and RGI Index relative to model forecast.
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Regular Features |  |
Escalating Risk Visibility - The Professional Risk Management View of the Role of the CRO 
Counterparty Risk in Structured Finance Transactions: Swap Criteria 
Risk Manager’s Toolkit - Sure-Fire Spreadsheet Tips and Tricks for the Practicing Risk Manager Enterprise Risk - Fighting Risk Measurement Myopia, Creating a Risk Inventory and Gap Analysis, and Dealing with Obstacles to Enterprise-Wide Risk Management Risk Reporting - Creating Incentives for Proper Data and Risk Reporting and Disclosure 
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Informatica White Papers |
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Market Risk – Hedge Funds Advance +0.30 Percent in DecemberData Quality - Business Case Projecting ROIData Quality - Compliance & Risk for Financial InstitutionsMonitoring Data Quality Performance using DQ MetricsData Quality Profiling - Calculating ROI for Data Migration & Data Integration Projects |
Hands-on Finance Tutorials |
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Hands-on Finance Tutorial #7 – Balance Sheet Analysis Hands-on Finance Tutorial #6– Yield Curve Building 
Hands-on Finance Tutorial #5 - Historical Data Analysis, A Basic Trading Strategy Hands-on Finance Tutorial #4 - Fixed Income Fundamentals Hands-on Finance Tutorial #3 - Cash Flow and Equity Analysis Hands-on Finance Tutorial #2 - Foreign Exchange Fundamentals and Applications Hands-on Finance Tutorial # 1- Rates & Discount Factors |
Fusaro Tutorials | |
Tutorial - European Natural Gas, Towards a Competitive Market Tutorial - Weather Trading, Raising the Temperature in Monte Carlo Tutorial - Bandwidth Trading and Risk Management, Developing a Market Tutorial – Emissions, Trading in Practice Tutorial - Electricity Trading, Europe and North America |
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Basel II: The 'Bottom-line' Impact on Securitization Markets Fitch Ratings 1991-2004 Structured Finance Transition Study Credit Default Swap Options: What They Are, Who Is Using Them, and Why Sarbanes-Oxley Section 404: Fitch's Approach to Evaluating Management and Auditor Assessments of Internal Controls High Yield Credit Default Swaps - Restructuring as a Credit Event Hedge Accounting and Derivatives Study for Corporates Counterparty Risk in Structured Finance Transactions: Swap Criteria IFRS and International Accounting Convergence: Revolution or Evolution? Accounting for Stock Options, Should Bondholders Care? |
BIS Working Papers | |
The Great Depression As A Credit Boom Gone Wrong Currency Crises And The Informational Role Of Interest Rates Principles For The Management And Supervision Of Interest Rate Risk Markets for Bank Subordinated Debt and Equity in Basel Committee Member Countries The Role of Central Bank Money In Payment Systems Risk Management Principles For Electronic Banking Overview of The New Basel Capital Accord |
Federal Reserve Bank Papers |
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Global Reports | |
Risk Professional Compensation Survey Business Resilience - Ensuring Continuity in a Volatile Environment The CDM Paradigm Corporate Defence Management (CDM) Continuum 2006 Professional Compensation Survey, Risk Consulting 2006 Professional Compensation Survey, Corporate Risk An Executive Guide to Corporate Defense Management (CDM) Catastrophe Risk Management, Preparing for Potential Storms Ahead Japan, Discussions on Advancing Credit Risk Management through Internal Rating Systems Superstars or Average Joes? A Replication-Based Performance Evaluation of 1917 Individual Hedge Funds Regulatory Risk - Trends and Strategies for the CRO Risk Management Compensation Survey Operational Risk - Bank Capital, Agency Costs, and Monetary Policy What Does the Risk-Appetite Index Measure? Commentary – The New Player In The Risk SpaceGuide to the Sarbanes-Oxley Act, Internal Control Reporting Requirements |
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