counterparty

This is the only way realistically for a developer to have the certainty of a contract with a credit-worthy counterparty.

At least let the counterparty understand that the matters of the company are not decided by the largest shareholder or the chairman alone.

Were the bank counterparty to fail, the index provider would be left with assets that were unrelated to the target portfolio.

"The primary thing our investors have been trying to understand is counterparty risk, " said the head of one large London fund.

They become an off-book contract between the counterparty brokers, who agree not to pursue the matter.

Painstakingly built over the course of 40 years by an army veteran, Hank Greenberg, AIG was the ideal counterparty for Wall Street.

People familiar with Citi say the US bank was more or less steered to CDB as the proper counterparty for a dialogue with the Chinese.

However, the counterparty problem poses a real risk that the cogs of the system could start to seize up again in the coming days.

The failure of a counterparty and the resultant loss could be an example of such a risk.

With a triple A rating, AIG was an attractive counterparty for swap transactions.

Rather than lending directly to borrowers, all the trades are cleared through a central platform, which reduces counterparty risk.

Improvements to derivatives markets since then have made it easier for banks to sever ties to a troubled counterparty.

Its counterparty is not thought to have been Lehman, and JPMorgan was not named in Mr Valukas's report.

Another reason is counterparty risk, the fear of being on the other side of a transaction with a failed bank.

It treated IKB like a trade counterparty while Paulson got the privileges associated with a client.

The bank counterparty will enjoy a higher return from the arrangement.

There is less risk that a counterparty blows up, and the " carrying cost " of gold in terms of lost interest is, in any case, vanishing.

Such counterparty surveillance is a central pillar of our financial markets' state of balance.

Such counterparty surveillance is a central pillar of our financial market state of balance.

To reduce risk to market participants, the contracts should be traded on an exchange or via a central counterparty.

Among those using financial derivatives, three out of four said they were worried about the financial prospects for their counterparty.

The amount of counterparty risk in the system will be reduced greatly by central clearing-houses for credit-default swaps.

Traders say market conditions suggest the Bear rescue has not completely alleviated worries about counterparty risks.

If the pledged securities become inadequate during the repo period, the counterparty may ask the repurchase party to add or replace them.

The problems are exacerbated by the demise of the securitisation market, and fears about counterparty risk.

it is the fear that your counterparty might be in that predicament that is gumming up the markets.

The financial infrastructure also has important effects on how market participants respond to perceived changes in counterparty risk.

This would increase counterparty dependencies, systemic risk, and worsen risk management spirals as discussed above.

Some products meant to limit risk bury it in complexity, or just transform it into counterparty risk or systemic risk instead.

After all, the other counterparty in the swap will usually be a bank, which is less creditworthy than the American government.

don't coerce or threaten the counterparty even if one is in a stronger position.

The multilateral net position represents the bilateral net position between each participant and the central counterparty.

Barclays stepped in for DFC, a bankrupt New Zealand mortgage bank in 1989, replacing it as a counterparty for all its interest-rate swaps.

The aim is to prevent the default of one market participant from spreading "counterparty risk" throughout the financial system.

But nervousness about counterparty viability already has returned, driving up measures of bank credit risks to nine-month highs.

When an aggrieved counterparty filed suit in New York, the group provided an astonishing explanation for its plight.

Fears of counterparty risk -- that a borrower might default or collapse without paying off its debts -- spread across the globe.

The slim margin for error means confidence could still evaporate, with even good banks dragged down by counterparty risk.

Counterparty risk is reduced since all parties work through the same clearing mechanism.

This will offset in part market deficiencies stemming from the failures of counterparty surveillance.

To be fair, totting up counterparty risk is not easy.

"We would never intentionally mislead anyone, certainly not our clients or a counterparty, " Greg Palm, Goldman's general counsel, said.

Moreover, these deals have trapped banks and other financial players in a complex web of counterparty risk.

This may seem like a good idea when counterparty risk is low, but that can change abruptly and dramatically.

The transfer of wholesale market counterparty risk from the market to the taxpayer is the central issue.

Mr Boyd argues that the investment bank was acting only as any prudent counterparty would.

These "synthetic" funds entail hidden counterparty risks.

One clear problem is counterparty risk; insurance is worth nothing if the insurer cannot pay up.

There are enhanced rules on affiliate transactions, lending limits, and counterparty credit exposures.

And if neither EU banks nor the ECB can secure enough needed dollars in global markets, there is a serious counterparty risk to the Fed.

Every financial firm was measuring its exposure to every counterparty.

Our counterparty created a variety of obstacles to intimidate us.

The Seller will take counterparty credit risk on any participation seller.

Such players had huge profits on their positions with Lehman as their counterparty.

This can easily be circumvented by routing trades offshore and not using a German counterparty.

We would never intentionally mislead anyone, certainly not our clients or a counterparty.

As a result, counterparty risk is up, and the market is not functioning smoothly.

That risk remains, judging by CDR's counterparty-risk index, which measures the health of CDS dealers (see chart 1).

Theslim margin for error means confidence could still evaporate, with even good banksdraggeddown by counterparty risk.

Counterparty The other party to an agreement.

One counterparty pays a floating rate of interest such as LIBOR and the other pays a fixed rate or a different floating interest rate.

But unlike with Lehman, the government can stand behind any counterparty transaction.

Credit risk: The risk that a debt issuer may default on payments. Also called counterparty risk.

You should also understand that we get paid up-front when we enter into the contracts and therefore run no counterparty risk.

The woes of Lehman Brothers, like Bear a big CDS counterparty, hint at even bigger tests to come.

The more the government guarantees counterparty risks, the less the need for private sector actions.

Nor is there any third party to ensure that a trade will be completed if one counterparty fails.

In addition, we can dispatch documents to your counterparty's bank for earlier payment. In turn, will save your transit interest.

Central Banks feared counterparty risk for the first time in 20 years and substantially curtailed gold lending and sales.

Gold is "a currency that can't default. It doesn't have any counterparty risk. It's universal money, " says Larkin.

the counterparty desires this economic exposure, but the TR swap enables it to achieve this without taking on the associated financing cost

And they have realised that published, audited accounts do not reveal those subtle, secondary counterparty and liquidity risks;

Few financial economists thought much about illiquidity or counterparty risk, for instance, because their standard models ignore it;

approved securities borrowing and lending counterparty

Traded and Derivative Products with Counterparty Exposure

Credit Derivatives Research has devised a counterparty-risk index, based on the cost of insuring against default of 15 large banks;