Pre-migration untagged articles

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The credit and equity markets treated the biggest US interest rate cut for 26 years with indifference, even scorn this week. The 75bp cut on Tuesday failed to halt the rout in markets, as investors are now convinced a US recession is inevitable.

A late recovery on Thursday saved the Swiss franc market from another unimpressive week after swap rate volatility closed the market on Monday and Tuesday.

Commercial paper dealers blamed the Federal Reserve rate cut and month-end for a slow week in which ECP volumes were 27% less than last week.

The public spat between rating agency Fitch and structured investment vehicle manager Gordian Knot worsened last Friday after the agency placed the AAA/F1+ rated MTNs and CP issued by Sigma Finance, a $31.6bn SIV sponsored by Gordian Knot, on Rating Watch Negative, highlighting the SIV’s reliance on repo funding as a key issue.

EuroWeek understands that the UK’s covered bond framework is a step closer after the Financial Services Authority, which will be responsible for supervising the Regulated Covered Bond regime that HM Treasury will implement on March 6, revealed last week (17 January) the timetable for its part in the process.

THE HEDGE Fund Working Group, headed by Andrew Large, this week published its final report on hedge fund standards, designed to serve as an indication of how best practice standards across the industry should be maintained and strengthened.

On the very same day that UBS shares fell through Sfr45 (yes, we couldn’t believe our eyes) there were several stories circulating in Zurich and London that Marcel Ospel, the chairman of UBS, was coming towards the end of his career and might choose to retire sooner rather than later.

Bank of Nova Scotia, the second largest Canadian bank by market capitalisation, is on a roadshow for its US$15bn covered bond programme, and is keen to follow Royal Bank of Canada (RBC) and Bank of Montreal (BMO) into the market.

This week might not appear the best occasion in which to launch a new credit product, but, undeterred, Barclays unveiled a family of quantitative strategies based on the European and US CDS markets on Monday.

BN Boligkreditt bowed to the inevitable on Tuesday and took the decision to postpone its first covered bond, a planned Eu1bn five year issue with guidance of the 15bp area over mid-swaps, after the covered bond market was hit by the shockwaves set off by Monday’s sharp sell-off in equities.

BANK OF America reported net income of $268m for the fourth quarter of 2007 on Tuesday, a 95% decrease year on year and down from $3.698bn in the third quarter.