The State of the Credit Markets: Part 2. Global Trends
“Political uncertainty creates a bimodal distribution of risk, which is very difficult for the markets to price,” said Seth Rooder, Global Credit Derivatives Product Manager for Bloomberg, and the second of two speakers at the Global Association of Risk Professionals (GARP) webinar on November 15, 2012. (Click here to view Part 1.) Rooder was referring to the first of five main themes in global risk trends, as he sees them. They are: (1) Economic and political uncertainty (2) Slowing global growth (3) Central Bank (CB) intervention (4) Continuing low yields (5) Increased regulation Ever since the financial crisis of 2008, […]
The State of the Credit Markets: Part 1. The Curious Case of the Euro Zone
“The euro zone is caught in the middle of two opposing forces,” said Alberto Gallo, head of European Macro Credit Research for Royal Bank of Scotland (RBS) and a featured speaker at the Global Association of Risk Professionals (GARP) webinar “The State of the Credit Markets” on November 15, 2012. He was referring to the forces both “positive” (European Central Bank liquidity and low interest rates) and “negative” (heavy debt and increasing fragmentation) in the euro-zone financial markets. Gallo pointed out that, in the last 20 years, banking in Europe has grown tremendously. At €35 trillion, bank assets are now […]