Credit derivatives have been a positive development for the global financial system, facilitating enhanced risk transfer and dispersion, according to a global credit derivatives survey published by Fitch. While credit derivatives have been beneficial as a risk transference tool, the report identifies weak disclosure standards, the potential for unanticipated risk concentrations and the role of hedge funds as potential areas of concern. ‘On balance, we believe that credit derivatives have been beneficial for the market,’ said Roger Merritt, managing director, Fitch Ratings. ‘Nevertheless, the agency believes there are risks that bear watching, including low financial transparency, informational asymmetries, potential risk concentrations and the possible promotion of new forms of moral hazard within the banking system as the linkage between origination and management of credit risk becomes more attenuated. Further, traditional measures of financial strength and performance are at risk of becoming increasingly distorted in the absence of a minimum standard of disclosure regarding credit derivatives activities.’
A report by broking group Marsh examines the repercussions from the administration of the South Korean company, which filed for bankruptcy protection at the end of August.
Global research by C2FO suggests that smaller businesses are less concerned with the repercussions of Brexit and the upcoming US presidential election.
A squeeze on skilled talent means it now takes an average of seven weeks to fill open permanent roles in finance in the UK according to new research from financial services recruitment firm Robert Half.
Early-stage merger and acquisition deals in Asia-Pacific show nearly 10% year-on-year growth in recent months.