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News and Information

In this section, CreditPulse will cover newsworthy topics relevant to the credit risk function in a unique manner that increases perspective and includes specific information not found anywhere else.  The information is always accurate and unbiased.

Recent Articles

Sovereign Debt, Slow Growth Make For a Volatile 2011

January 30, 2012

Credit risks related to sovereign debt is at an all-time high as some of the world's most developed nations and their financial institutions struggle to remain solvent in an era of deleveraging.  "Famine following feast."

The political, economic and financial risk of doing business around the world soared in 2011 as more and more nations, banks and companies grappled with increasingly uncontrollable amounts of debt.  Read what Swiss Bank UBS has to say about the decade ahead in this CreditPulse special report.

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The Most Volatile World Currencies in 2011

January 23, 2012

Political and economic instability roiled the world's currency markets in 2011 and were the principle drivers for the most volatile world currencies, according to volatility data on 116 world currencies.

Despite intervention by some central banks, most notably China, the global currency markets -- in which sovereign currencies are bought and sold to facilitate trade and foster economic activity -- remain one of the true free market mechanisms in our global economy.  Find the hot spots for currency volatility in this CreditPulse exclusive.

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Increased Bank Stock Volatility Signals Possible Danger

December 16, 2011

Many in the media and financial world seem convinced that the U.S. economy is on the road to recovery, but two scholars point to increased bank stock volatility as a sign of more trouble ahead.  "A bright red warning signal."

In the last half of 2011, the standard deviation percentage, or volatility, of bank stocks in the United States began to increase eclipsing the critical 3 percent mark in a manner remarkably similiar to what occurred in 2008 before the credit crisis.

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French Banks Lead the Way In Greek Bond Exposure

June 22, 2011

Two French banks are at the top of the list in exposure to Greek bonds, which could expain why France is fighting so hard to maintain European support for Greece and prevent a debt restructuring.  "Investing in euros and selling in drachmas."

In a letter to shareholders in its 2010 annual report, BNP Paribas Chairman Michel Pebereau and CEO Baudouin Prot, offered up a lofty view of the bank's role that goes well beyond regular consumer and commercial lending.  "At BNP Paribas we remain convinced that we play a vital role in society

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The Most Volatile World Currencies in 2010

February 24, 2011

Political and economic instability were the main culprits for the countries with the most volatile currencies in 2010.  Thus, it's no surprise that an African nation sits atop the list of the world's 146 currencies given that continent's history of political unrest, but five of the top ten are European.

Currency volatility is one of the key factors in determining currency and credit risk for the nations of the world.  It is also a key component of sovereign risk analysis.  Read below as CreditPulse provides the currency volatility ratio for all 146 currencies of the world for the year 2010.

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Noteworthy 2010: Key Quotes From The Past Year

December 20, 2010

From massive government bailouts to more cheap money from the Fed to the controversial Finance Reform Bill, 2010 was an unprecedented year in the world of credit risk and credit markets.  CreditPulse puts the year into perspective by reviewing the key quotes from 2010.

In the world of credit, the year 2010 started out with many in business, finance and economics still wondering what happened to cause the credit crisis of 2008 -- a period in which the nations largest banks were on the brink of failure, credit was essentially frozen and GDP plunged -16.4 percent from

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U.S. Government Takes General Motors Public

December 3, 2010

The U.S. government has reintroduced General Motors to the capital markets in a carefully orchestrated IPO that has infused it with fresh capital, but most of the risk factors that led to the company's failure the first time are still in place.  "Only with a cold, dead hand."

In the GM prospectus filed with the SEC on November 3rd prior to its initial public offering (IPO), the very first line reads, "General Motors Company was formed by the United States Department of the Treasury in 2009."  Learn more about GM's risks and its CSI ranking history inside.

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Landmark Finance Reform Signed Into Law

July 23, 2010

Using large majorities in both chambers of Congress, Democrats finally succeed in pushing through a 2,300-page financial reform bill that dramatically increases the government's role in banking, regulation, credit markets and consumer lending. Trading profitability for safety.

Claiming "there will be no more tax funded bailouts," President Barak Obama signed into law on Wednesday the most sweeping changes in financial regulation since the Securities and Exchange Acts of 1933 and 1934.  The signing of the bill caps off a trying nine month period dating back

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Financial Reform Bill Passes U.S. Senate

May 28, 2010

The U.S. Senate passed its version of Wall Street reform last week by a vote of 59-39 in a complex 1616-page bill that gives massive new powers to the Treasury, Federal Reserve and FDIC in addition to creating five new oversight bodies. It is unclear if the bill ends "too big to fail."

In late November 2008, the free market was in the process of holding Citigroup, the nations second largest bank, accountable for years of misplaced priorities, poor management and excessive risk taking.  The company's stock had sunk to $3.77 per share even as the shares of other

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Proposed Legislation Undermines Credit Risk, Threatens Capitalism

November 24, 2009

Massive government bailouts of failed firms such as Citigroup and General Motors have already served to undermine the concept of effective credit risk management, one of the fundamental pillars of capitalism.  Now, some in Washington and Wall Street want to go even further. 

Two weeks ago, Senator Christopher Dodd, the chairman of the Senate Banking Committee and long-time influential Democratic senator from the state of Connecticut, circulated a 1,100 page bill that would grant more power to the Federal Reserve and FDIC to bail out more companies.   

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