Market information

Wednesday, May 19, 2010

After the European Parliament approved tighter controls on hedge funds last Monday, the European finance ministers came up with a different agreement regarding the same issue yesterday. Both agreements ensure better investor protection and more transparency concerning the risk and investment policy of hedge funds, but also of funds consisting of private equity, real estate and commodities. The European member states want to determine the rules for non-European hedge funds themselves, while the European Parliament called for a general European “passport” with which foreign hedge funds can gain access to the European market.

In addition, Germany announced an immediate ban on speculative transactions in European government bonds and in shares of ten German financial institutions. The ban mainly concerns the so-called “naked short selling”, but also temporarily prohibits trade in naked credit-default swaps of euro-area government bonds.

The above news led to losses on the financial markets. The Dow Jones decreased by more than 1% and the euro currency recorded a loss of 1.5% against the US dollar. European stock markets opened a percentage point lower this morning.

The 6 month Euribor remained unchanged at 0.98%, but the 10 year Swap decreased by 11 basis points to 3.03% because of above news.

In the attachment below, today’s market data on money and capital market rates as well as other rates are presented. For more history of these rates or other rates feel free to ask: .(JavaScript must be enabled to view this email address)

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