12 September 2007
Alliance Trust says that the complicated chain of structured finance underpinning the $600bn US sub prime mortgage market means that the impact on financial markets could be up to 100 times the value of the original loans.
Will the clouds over the market disperse or are we in for a storm?
Alliance & Leicester, Bradford & Bingley and Paragon have denied the FSA is leading an investigation into their solvency following Northern Rock's funding crisis. But a source close to the FSA says the regulator is worried by the situation and is asking all banks to prove their funding is secure.
Pension consultant Ros Altmann claims that while the government is promising Northern Rock customers that their savings are protected, victims of collapsed final salary protection schemes are still fighting for their money.
Axa Framlington has appointed Mark Tinker to manage the group’s £94m managed growth fund.
Following claims that balance-sheet lenders face becoming overexposed amid the sub-prime turmoil, Tanya Powley reports that other commentators are confident that there will be little need to tighten criteria
Bringing bonds into the modern age raises a number of issues
Chris Salih reports on the reaction to PSigma's US large-cap launch
The key to rebuilding shattered investor confidence would be for the Fed to indicate that the easing cycle could become open-ended if conditions in the credit markets do not stabilise, according to BlackRock.
Blemain Group has announced changes to its product plans, including maximum LTV reductions, effective immediately.
Jupiter Asset Management chief executive Edward Bonham believes that Northern Rock’s differing business model has made them more vulnerable in the wake of the recent market volatility.
The LibDems wasted no time livening up a cold and dull Brighton morning with a stinging personal attack on Gordon Brown over the events at Northern Rock, suggesting it is a sign of worse to come.
Crosby Capital Partners is to take over the management of Forsyth Partners 39-strong fund of funds range, subject to regulatory approval.
UK sub-prime lenders are battening down the hatches in the credit storm sweeping in from the US, reports Samantha Downes
DB Mortgages is withdrawing its higher arrangment fee near prime +, near prime and super light products at the close of business today.
MPC Investors says its global convertibles fund has seen a lot of support from multi-managers, particularly since management groups have been launching multi-asset and total return portfolios.
F&C has appointed Paras Anand to the new position of head of European equities with overall responsibility for F&C's continental and pan European equities teams.
F&C is following in the footsteps of Schroders and Jupiter with the launch of its own climate change vehicle.
Troubled conditions did remain last week, not that it was too difficult to forecast the continuation of volatility in markets. Sentiment is fragile and it is hard to see confidence being restored soon.
Forsyth Partners Ltd and Forsyth Partners (Europe) have both been placed under administration.
S&P Fund Services says the biggest risk to funds of hedge funds is if the recent volatility turns into a bear market.
Internationally diversified firms should emerge strongly from the turmoil
The Government has pledged to guarantee all deposits held by Northern Rock customers in an attempt to stop the scenes of panic seen across the country since Friday.
Our panel consider the FSA probe into multi-manager charges and whether fund firms can justify performance fees
The Institute of Financial Planning has received a record number of nominations for the board this year.
Australian financial services information provider Dealers Group is to host a series of roadshows focusing on practice development for financial planners and IFA businesses.
Infinity Mortgages has launched a new packaging company to the market under the name of Infocus Mortgage Company.
The term "irrational complacency" was coined by a New York Times columnist in the run up to the summer's credit market turmoil.
Amidst the doom and gloom surrounding the finance sector this week, the protection industry contributed some little rays of positivity.
Cheltenham & Gloucester has confirmed that intermediary sales director John Champion will be leaving at the end of the month after 20 years at the lender.
PSigma income guru Bill Mott has raised the exposure to financials in his income fund to 35 per cent, claiming the sector now offers “outstandingly good value”.
Isle of Man Finance has announced the appointment of John Spellman as director and Head of Isle of Man Finance.
BDO Stoy Hayward Investment Management has announced the appointment of Robert Kingston as a senior pensions consultant, to be based in the Midlands.
T Bailey is waiving the initial charge on its forthcoming UK best ideas fund until the end of the year.
Mortgage brokers are standing behind Northern Rock’s products and say they will continue to advise clients to take out a Northern Rock mortgage if it’s the right deal for them.
Global credit ratings agency Fitch Ratings says its downgrading of Northern Rock will not impact upon the ratings assigned to the Residential Mortgage-Backed Securities issued from Northern Rock’s Granite master trust.
Northern Rock sales director Mark Robson claims the company has received “overwhelmingly positive” feedback from its key intermediary contacts following assurances that the company remains fully operational.
Northern Rock has tried to reassure its customers that their savings are safe while thousands of savers continue to queue at branches to withdraw their savings from the troubled bank.
Northern Rock says that its call centres are getting just 9 per cent of the calls they had yesterday in the first sign that the Government's pledge to guarantee all deposits held by Northern Rock customers has helped to allay the scenes of panic seen across the country since Friday.
The focus is once again back onto the UK’s third biggest mortgage lender - in terms of gross mortgage lending - Northern Rock.
National Savings and Investments saw new funds in its savings products more than double over the weekend, following claims that all money invested with it is “100 per cent secure”.
We need to shake up open market option rules to end consumer apathy
As the Twenty20 Cricket World Cup kicks off this week, Resolution and Friends Provident pulled off a masterstroke of their own by hitting potential rivals Pearl for six as they continue to fend off those bidding to derail the creation of Friends Financial plc.
As MM's regulation reporter was living the dream in Ibiza last week it fell to me to attend Osney Media's financial services distribution summit.
Some say that any change is an illusion and that the Groundhog Day effect is more common than we realise.
Aifa has attacked the FSA for spending its resources on retail distribution review market research now and not before the discussion paper was published.
Incoming Positive Solutions chief executive Jim Reeve gave a bullish speech at the firm’s annual forum suggesting the banc assurance model will fail to serve the mass affluent market while Pos Sol will “transform this industry”.
Some advisers believe that the protection business will be brought under the constricts of the retail distribution review and are calling for pure protection to be ringfenced. Helen Pow reports
PSigma is to launch a European income fund under the management 2CG founders Charles Glasse and Chris Garsten.
Northern Rock branches have been inundated today with customers withdrawing their savings and closing accounts.
Economic outlook Kevin Telfer, fixed-income product specialist at Aegon Asset Management, analyses whether the problems caused by the US sub-prime mortgage crisis will spark a slump and points to the investment areas which should produce good returns whatever the outcome
How to build shock absorbers into an investment portfolio
Aberdeen Property Investors believes that the recent credit crunch will hasten the end of the current period of indiscriminate yield compression in Europe.
There is good news and bad news for the housing market. The good news is that – for the time being at least – it looks as though interest rates are not going to climb any higher although, admittedly, rates could still go up if the liquidity crisis continues and the rate at which banks borrow money remains high. The bad news is that, despite the good news, affordability has reached new lows.
Helen Monks assesses the massive shift in business since A-Day to self-invested personal pensions
Standard Life Investments has recorded its strongest first half sales figures with profits before tax up 43 per cent to £40m.
The gap between the average returns on Euro offshore savings accounts and the European Central Bank rate has widened to 0.70 per cent, according to Investec Bank.
Robust portfolio planning requires more than a broad fund choice
Royal Liver's chief executive likes to hit the heights in the Highlands when he is not busy taking the company back to the high ground of life and pension business with a tough modernisation programme which he believes puts the firm on course for continued success and he explains why the Royal marriage never made it to the altar. Interview by Will Henley
As our recent survey of cross-party MPs shows, over 90 per cent of backbenchers think financial advisers should be qualified to chartered status.
SWIP has poached Cazenove’s five strong multi-manager team as it bids to widen its investment offering.
Probably one of the most contentious areas in relation to the retail distribution review is its effect on the number of advisers who will be able to class themselves as IFAs and, in turn, the effect that this may have on genuine independent advice for the mass market.
Financial advice Jan Regnart, chief executive and David Baker, legal director, of wealth management company Wealthtime ask whether IFAs can ever really justify recommending Sipp and wrap firms in which they have a financial interest
Richard Leeson, head of international investment at Prudential, sets out in detail the changes in tax treatment involving trust transfers for IHT planning
Money Marketing would love to tell its readers that some clear choices are arising for advisers from the RDR but they are not yet.
For many years, it has been accepted industry practice for life companies to provide specialist technical resources to advisers. There could now be serious implications, with the High Court ordering Scottish Equitable to compensate a client because its repre-sentative was present at the time when advice was given.
New rules are being proposed to deal with the issue of insurance contracts and disclosure
ABN AMRO Bank’s chief economist Joost van Leenders claims there’s no longer any question of whether the US Federal Reserve will cut rates, but rather by how much.
A major report into the NHS has questioned the long-term viability of the healthcare service.
Cut! The FSA is in danger of producing a turkey with its script for the RDR