The dramatic market downturn has led to worries about counterparty credit risk. In the over-the-counter credit derivatives market, where bilateral deals are struck directly between trade counterparts, credit risk quality is paramount. Natasha de Terán reports on how the market is coping.
As write-downs hit, many banks are being left with no alternative but to raise more capital this year. Some believe that hybrid securities will be the favoured approach, others believe that market conditions will make the equity and equity-linked markets the easier route. Neil Sen reports.