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ABCP conduits suffered a reputational battering as a result of last summer’s liquidity freeze in the commercial paper market. However, if events in Mexico are anything to go by the concept has survived. In late February, Deutsche Bank was poised to launch the first Latin American ABCP conduit in Mexico, a diversified multi-seller vehicle dubbed Aztlan. Named after the mythical place of origin of the Aztec people, Aztlan has been set up to invest in various peso-denominated receivable pools, including trade receivables, future flow receivables, mortgage loans and consumer loans. Crucially, given the problems that this and the structured investment vehicle sector have wrestled with over the past six months, the conduit is supported by a 100% liquidity facility from Deutsche Bank. "I think that one of the most compelling features about this structure, unlike an extendible programme or a SIV programme, is that this conduit is afforded a traditional liquidity facility," says Alberto Santos, a senior director at Fitch Ratings. "The lack of liquidity facilities was at the forefront of the funding issues experienced during the second half of 2007. The structural features within this conduit, including the liquidity agreement, are expected to mitigate market disruption or timing risk for this conduit. Typically, liquidity facilities can be used to pay maturing commercial paper or to cover timing mismatch between assets and liabilities of a multi-seller asset-backed commercial paper conduit."

When global events blew across the stock market, it sent Portugal’s smaller companies scurrying back into their shells just as they were being tempted out. That leaves only the biggest prepared to face the storm.

The California Public Employees’ Retirement System is putting $350 million with smaller managers. The $240 billion fund is putting $150 million with emerging manager fund of funds FIS Group. It is the scheme’s first allocation to emerging long-only managers. FIS Group was set up in 1996, and its emerging manager fund of funds allocates to small investment management entrepreneurs that usually fall below the radar screens of large institutional investors. The maximum assets under management of managers will be $2 billion from around the world. Calpers will also be putting $200 million into Redwood Investment Management.

The internet campaign to raise €5 billion to save the career of rogue trader Jérôme Kerviel, launched on social networking site Facebook, has got off to a slow start, with only 2,095 members so far having pledged €1 each towards the cause.

Banker: "We looked at SG, but the integration would have been very difficult and, in any case, the French don’t like to sell to foreigners"

Anticipation of the much-discussed but now postponed launch of the European residential mortgage-backed securities index (ERMBX) is behind violent swings in spread levels on single-name credit default swaps on RMBS tranches. Markit, ERMBX’s owner, announced that the index’s debut has been delayed because of market volatility. That volatility, in fact, has been caused by buyers of protection on single-name CDS referencing prime RMBS AAAs, say market participants.

Anyone who follows the travails of England’s football, cricket and rugby teams should easily have predicted Northern Rock’s troubles.

Tough talk by the regulators might bear fruit for the monolines.

The UK government’s actions and intentions remain confused. It is time to end the uncertainty.

Exchange-traded funds backed by physical gold are to be launched on the Tokyo Stock Exchange, following last August’s debut on the Osaka exchange of ETFs backed by bonds linked to the price of the precious metal. Japan’s investors have long had an affinity for gold: it is the only country where buyers of gold-related options contracts frequently exercise their right to delivery, according to Itsuo Toshima, regional representative of the World Gold Council. It is also the only country in which gold accumulation plans, whereby investors gradually acquire small amounts of the metal through diligent monthly payments of as little as ¥3,000 ($30), have succeeded.

"On the day the Jérôme Kerviel story broke, we had two options for the lead story on the main news bulletin: SG, or the official inquiry’s report on the maltreatment of Iraqi prisoners by British soldiers. It had found that the abuses were isolated incidents rather than systematic failures. A bit like SG claimed..."

The Indian stock market is in free fall, but on the sub-continent that story has had to take second billing to the forthcoming Indian Premier League 20/20 cricket tournament set to take place in April.