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’Snap news
Breaking pre-market news on Monday,
- Swiss Re estimates Japan claim costs at $1.2bn – statement.
- Deutsche Telekom planning €5bn buyback following sale of US business — statement.
- Gem Diamonds in preliminary merger discussions with Lucara Diamond Corp — statement.
S&P says catastrophe has no impact on catastrophe bonds – yet
Fresh from Standard & Poor’s — news that Friday’s whopping Japan earthquake won’t impact six natural catastrophe bonds exposed to, erm, Japan earthquake risk:
Note, the programmes above belong to insurers including Munich and Swiss Re.
Snap news
Breaking pre-market news on Thursday,
- Vince Cable refers News Corp bid for BSkyB to Ofcom — statement.
- BT says pension liabilities have fallen by £2.9bn as a result of the government’s indexation move — statement.
Snap news
Breaking pre-market news on Thursday,
- BNP Paribas reveals €5bn Greece sovereign exposure – statement.
- Commerzbank reports first profit in seven quarters – statement.
- Deutsche Bank ups stake in China’s Hua Xia bank to 19.9 per cent – statement.
A good day for the Sage
After his surprise move into US railways late last year with the $26.6bn purchase of rail operator BNSF, Warren Buffett is expanding his presence in the reinsurance industry — a sign, say some analysts,
Adventures in sovereign bonds, European insurers edition
FT Alphaville readers will remember that some insurers are actually rather terrible bond investors.
Corporates, hybrids, you name it — insurers were usually invested in it. And sovereigns bonds, many of which are now under pressure,
Thirty financial groups on systemic risk list
Thirty global financial institutions make up a list that regulators are earmarking for cross-border supervision exercises, the Financial Times has learnt. The list, drawn up by regulators under the auspices of the Financial Stability Board,
Snap news
Breaking pre-market news on Wednesday,
- Lloyds interim proforma loss widens to £4bn — statement.
- Allied Irish Banks posts interim loss of €786m — statement.
- Halifax UK house prices rise 1.1 per cent in July — statement.
CDS update: US banks worsen
The cost of protecting US banks against default rose sharply on Tuesday afternoon UK time as investors in both equity and credit markets showed renewed signs of skittishness over the durability of bank earnings and over the upcoming results of the US “stress tests”.
A lack of surety: Swiss Re and the trade credit collapse
The front page of Wednesday’s FT runs with the following story – that the UK government’s forthcoming budget is to include a “supply-chain insurance plan”:
The scheme will form a centrepiece of the Budget initiatives to help small to medium-sized businesses cope with the recession.
CDS report: Credit markets in sombre mood, Diageo warns on profits
Weaker performances in equity markets weighed on European credit Thursday morning, traders said. Trading activity was muted, with many investors wary ahead of the release of retail sales data in the US this afternoon,
The (Swiss Re) snowball
Warren Buffett knew this was going to happen when he spent CHF3bn on Swiss Re yesterday, right? From Moody’s:
Moody’s Downgrades Swiss Re Ratings (Senior to Aa3); Ratings on Review Down
Short-term ratings of P-1 affirmed.
Swiss Re turns to Buffett
Swiss Re on Thursday turned to Warren Buffett, the renowned US investor, for SFr3bn ($2.6bn) in fresh funding and cut its dividend to virtually zero as it struggled to retain its investment-grade credit rating.
CDS report: Markets bounce back, helped by US equity strength
This CDS report was written by Markit’s Gavan Nolan
European credit spreads bounced back in the afternoon, helped by a strong US stock market. The Markit iTraxx Europe index was trading around 156bp,
CDS report: Swiss Re leads insurers higher
European insurance groups outperformed in generally weaker credit markets on Thursday morning. Zurich based Swiss Re announced that it will seek up to SFr5bn of new funding to shore up its declining capital base;
CDS loss mars Swiss Re performance
Swiss Re admitted Tuesday that losses on two structured credit default swaps to an unnamed client had climbed to SFr2.7bn ($2.6bn) since the deals were disclosed last November. The world’s biggest reinsurer,
Swiss Re rocked by writedown increase
Swiss Re on Tuesday shocked investors with a bigger than expected writedown on a troubled credit deal that had already caused a SFr1.2bn ($1.1bn) loss last November. The world’s biggest reinsurer announced a further SFr819m writedown in the first quarter on the two credit default swaps on which it took the initial hit.
CDS report: But the credit crisis is over, right?
The cost of protecting the world’s corporate debt against default rose sharply on Tuesday, as investors reacted to a swathe of negative headlines related to the beleaguered housing and credit markets.
In the US,
Buffett move boosts Swiss Re
Warren Buffett’s Berkshire Hathaway group has taken a 3% stake in and struck a commercial alliance with Europe’s Swiss Re. The move, which lifted shares in the world’s biggest reinsurance company on another uncertain day for global stock markets,
Buffett heads for the Alps (but not to Davos)
Move aside SWFs. Now an Individual Wealth Fund, in the shape of one W Buffett’s Berkshire Hathaway, is riding to the rescue of a battered financial.
Berkshire has taken a three per cent stake in Swiss Re and simultaneously signed a reinsurance contract whereby it will take a 20 per cent share of all Swiss Re’s property and casualty business for the next five years.
Details emerge for Flowers bid for Shinsei stake
Even as he bids for the UK’s Northern Rock, high-flying dealmaker Christopher Flowers is also putting together a deal to buy almost a third of Shinsei, the Japanese bank he helped rescue seven years ago.
A born-again Citi tells Swiss Re to face facts and be dull
In the wake of Swiss Re’s $1.1bn writedown on Monday on two credit default swaps, Citi has issued a note to clients with some very strong words for the insurer. In fact, the bank gives Swiss Re quite a dressing down.
Swiss Re falls victim to subprime crisis
Swiss Re emerged as the latest casualty of the subprime crisis on Monday after a SFr1.2bn ($1.07bn) loss on two complex credit default swaps. The news pushed its shares down 10.25% to close at SFr87.55.
A big penny drops in Switzerland
For banks, the writedowns are on the wall. Now it’s time for the rest of the financial sector to start coming clean.
Monday’s announcement from (re)insurer Swiss Re is significant since it breaks the subprime writedown mold.
CDS report: Swiss Re hit by exposure to housing market
Swiss Re was the focus of attention in the European credit derivatives market on Monday, after the world’s biggest reinsurer said it took a SFr1.2bn ($1.01bn, €733m) writedown on losses from credit default swaps with exposure to US mortgages.
Standard Life asks Swiss Re to consider stake
Standard Life is fighting to stay in the battle for Resolution, drafting in further support from Swiss Re, which joined with Standard in its attempt to win the company away from rival suitor Pearl. Standard has asked Swiss Re to consider taking a stake in Standard,
Resolution deadline approaches
Any approach for Resolution from Standard Life looks set to go to the wire as Resolution and its arch-rival Hugh Osmond clashed over a proposed £2bn capital return from the group to be created from Resolution and Friends Provident.
Panel cracks whip in Resolution race
It’s officially a three horse, consortium race now – and the Takeover Panel is the pace setter.
The Panel on Monday afternoon ceded to a request from Resolution’s advisers to flush out the possible bidders circling it – who are threatening to derail its agreed merger with Friends Provident.
Swiss Re-solution?
At least one more company, thought to be the world’s largest reinsurer, Swiss Re, is conducting due diligence on takeover target Resolution Group, reports the Daily Telegraph. Analysts said Swiss Re was likely to be attracted to certain parts of Resolution’s business,