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Some banks’ internal risk calculations are equally unreliable Europe's policymakers have been focussed on breaking the link between banks and sovereigns since the eurozone crisis in 2012, when Greece defaulted on its debt. However, under EU rules, banks remain free to automatically rate all debt issued by the bloc's 28 member states as risk free, allowing them to avoid capital charges and understate the riskiness of their assets. This broad loophole applies irrespective of whether those bonds are issued by the government of Germany, or the government of Spain, Italy or Ireland.

ETMFs open the door to fancier baskets The success of investment management firm Eaton Vance's exchange traded mutual funds (ETMF) could lead to new US products that also attempt to mirror more than one fund type. ETMFs combine the intraday trading ability of an exchange traded fund (ETF) with net asset value (NAV) pricing used in mutual funds. This offers actively-managed ETFs a way to protect their proprietary indexes.

Deal-hungry operators think Europe has too many

The combination of telecommunication companies Oi and PT has taught Brazilian investors the downside of public M&A. A more thorough review of disclosures is likely to occur in future deals.

The International Capital Market Association (ICMA) has given another boost to pan-European private placements (PEPP) by publishing a market guide. But obstacles to the market's development remain, in the form of Solvency II capital charges across Europe.

The Hong Kong Monetary Authority's (HKMA) bank resolution consultation included the International Swaps and Derivatives Association's (Isda) protocol on temporary stays. Other Asian jurisdictions must follow.

Avril Cole John McDonald Adele Hogan Victor Tsao

Institutional investors don't like activism, they like openness. Articles on the topic, including some by IFLR, cite statistics that suggest activist tactics are growing in popularity among institutional investors. A recent study by FTI Consulting, for example, found that 76% support activism, seeing it as an important catalyst for change.

House of Representatives Democrat Elijah Cummings has told IFLR why he wants US banks to explain how they will benefit from the roll-back of swaps regulations in Dodd-Frank. The call from Cummings follows a letter he and US Senator Elizabeth Warren sent to banks on January 29, asking them to outline the scope of their swaps businesses, following a roll-back of the push-out rules, called section 630, released in December.

Far-reaching regulatory reforms have a mixed track record in taking into account developed and emerging markets' different needs – often, they lean towards the latter.