Christopher Whittall, IFR, Banks revamp credit trading models, here.
We have seen many players withdraw from CDS, for instance, which isn’t vital for primary market activity or bond trading.”
While many smaller banks exited CDS market-making in the aftermath of the 2008 crisis, there have also been some high-profile exits, including RBS and Commerzbank. More recently, UBS withdrew from voice-broking in credit derivatives in the face of eye-watering capital charges imposed by its local regulator.
The Swiss lender is the flag bearer for the minimalist approach to credit trading – the first of three camps into which global investment banks’ credit businesses can broadly be divided at the moment. Next comes the “niche player”, which includes firms such as Credit Suisse, Goldman Sachs, Morgan Stanley and Nomura, which strive to excel in a handful of instruments in the secondary credit universe.
Finally, there is the traditional “flow monster”, which counts Barclays, Citigroup, Deutsche Bank and JP Morgan among its ranks. BNP Paribas could also be added to this latter category in Europe, while Bank of America Merrill Lynch would get the nod in North America.
Jonathan Wai, BI, Here are 97 Books, Articles, and Movies that will make you smarter, here. CS that’s it?
Artificial Intelligence, Russell & Norvig.
Sebastian Thrun (Udacity) and Andrew Ng (Coursera) on machine intelligence.
Wired for War, Peter Singer
Gleick on a history of information theory and computation.
Boo Wendy Testaburger, boo.