Volatility is a key concern for 2019. The growing belief among institutional investors across the US and Europe is that volatility is set to become more of a concern in 2019 and potentially the years ahead. As a result, a number of investors are ramping up their use...
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The Reward of Risk
Traditional risk/reward comparisons treat the cost of an investment’s risk as a decrement to its potential return - overlooking the potential return available on investments in which risk may also provide a source of alpha. While cost-effectively reducing an...
Credit Hedging Products: A New Focus on Risk Spurs Demand
A new report from Greenwich Associates discusses how the significant decline of the credit default swap (CDS) market has caused some participants to seek other products for their hedging needs. Two new securities DelphX offers - Covered Put Options (CPOs) and Covered...
Launching a CDS Replacement is not a Straightforward Affair
It’s no secret there are difficulties in the credit default swaps (CDS) market—declining volumes, disputes over terms and other factors have bedeviled the space since the end of the global financial crisis. Less well-known are the efforts by financial innovators to...
In Order To Save The CDS Market, It May Have Been Necessary To Destroy It
The credit default swap (CDS), a financial product that has seen its volumes and outstanding notional decline for roughly a decade, credit default swaps have found their way back into the headlines—and for good reason. First, they have been at the heart of the kind of...
Fintech Decoded – Capturing the Opportunity in Capital Markets Infrastructure
Technology has long been the engine driving capital markets efficiency—both for investors in the markets, and for the capital markets infrastructure providers (CMIPs) that operate the exchanges and other trading venues, central counterparties, securities depositories,...
The Dawn of Digital Risk Management
The physical science of matter and motion provides valuable insight for the effective digital management of risk. In this first instalment of the DelphX Innovation Series, we describe how a new risk-pooling facility powered by transparent Distributed Ledger Technology...
The Value in Digitally Transforming Credit Risk Management
To withstand new regulatory pressures, investor expectations, and innovative competitors, banks need to reset their value focus and digitize their credit risk processes... Download the full PDF
Single-Name CDS Market Needs a Reboot
Revival of a robust single-name CDS market would offset the lack of liquidity in the cash bond market, increase price transparency and lower the cost of financial risk management for all participants. But the market needs a more efficient way to manage single-name CDS...
Confessions of an All-to-All Trading Advocate
Despite the benefits offered by all-to-all and other electronic trading platforms, statistics show that most corporate bond trades continue to be negotiated between a dealer and an institutional investor via phone or chat. Why hasn’t electronic trading captured a...
Big Benchmark Bonds – Dream or Reality
Could we enhance the corporate bond picture by reducing the number of issues outstanding, concentrating trading activity and thus increasing ‘liquidity’? Or, considering the disparate array of issuers, bond types and regulations in the market, is the wholesale...
PWC – Global Financial Market Liquidity Study
Market liquidity is critical to effective market functioning. Liquidity in financial markets facilitates the efficient allocation of economic resources through the productive allocation of capital and risk, the accurate generation and dissemination of issuer-specific...