Foreign exchange
US banks launch inflation-linked products
SunTrust has launched a new certificate of deposit (CD) linked to the consumer price index for US investors seeking shelter from rising inflation, which hit 5.6% in July 2008.
No respite for Lehman after loss warning
Chief executive Richard Fuld’s plan to rescue Lehman Brothers by selling off many of its operations has failed to stem a fall in market confidence, after the bank predicted record losses in the third quarter of this year.
JP Morgan launches Confidence notes in Singapore
JP Morgan in Singapore has launched the JP Morgan AsiaConfidence Notes Series 3, which is designed to give exposure to the performance of four Asian equity markets comprising China, Hong Kong, Singapore and Taiwan.
Lyxor offers China volatility play
Lyxor Asset Management in Hong Kong has launched the China All Weather Guaranteed Fund, which is designed to provide exposure to the absolute performance of the Hang Seng China Enterprises Index (HSCEI).
Interdealer brokers’ merger talks break down again
Stock prices of interdealer brokers Tullett Prebon and GFI Group plummeted on Tuesday, as a failure “to reach acceptable economic terms” halted ongoing merger talks.
Fannie and Freddie CDS to settle at October auction
The auction process to settle credit default swap (CDS) contracts written against Freddie Mac and Fannie Mae will take place in the first week of October, Risk has learned, although losses on the agreements are likely to be minor for most counterparties.
Calyon cuts back derivatives operations
Calyon will cut 500 jobs and pull out of the structured credit and derivatives markets as part of a plan to survive the market downturn.
Natixis snares hedge fund replication index licence
Natixis Investment Bank has obtained a licence to use the IndexIQ hedge fund replication index to create multiple structured investment products for institutional and retail investors across Europe and Asia.
The power of now
A real-time position reporting system is becoming an important tool for large energy trading firms. Sirius Solutions’ Brian Shydlo introduces the concepts, challenges and techniques associated with designing and implementing an RTP solution
The outlook for US gas
US natural gas prices, which have fallen by 30% recently, are expected to stabilise at current levels or rise from here, analysts say. Longer term, unconventional reserves could dampen prices. William Rhode reports
Implied trees: Valuing exotic options
In this next installment of the Masterclass series, Jim Clark, Les Clewlow and Chris Strickland show how to value exotic options, using a calibrated local volatility surface consistent with market prices
India’s NCDEX launches futures contract in thermal coal
India’s National Commodity and Derivatives Exchange Limited (NCDEX) today launched a thermal coal futures contract.
Old Mutual’s CEO resigns after facing writedowns
Jim Sutcliffe, chief executive of London-based financial services company Old Mutual, has resigned from the firm after it reported it would face heavy writedowns in its US life insurance division, US Life.
Financial recovery structured fund offered to Malaysian investors
CMS Trust Management in Malaysia has launched its first structured fund, aimed to offer investors exposure to bottomed-out financial stocks. The fund has been launched in partnership with OCBC Bank, and will only be available at the bank’s 29 branches.
Sterling Waterford launches Carbon Credit note in South Africa
Sterling Waterford Securities has listed its second Carbon Credit Note on the Johannesburg Stock Exchange. The note offers investors exposure to the price of Certified Emission Reductions which are part of the Kyoto Protocol Clean Development Mechanism.
CantorCO2e to hold first binding CER auction
Carbon broker CantorCO2e will hold the first binding Certified Emissions Reduction (CER) auction on 2 October.
BGI appoints Fuhr global head of ETF Research and Implementation
Barclays Global Investors (BGI) has appointed Deborah Fuhr as global head of exchange-traded funds (ETF) Research and Implementation Strategy, in a newly created role effective from September 15. Fuhr will also occupy the position of a managing director,…
US authorities step in to rescue GSEs
The US Treasury and Federal Housing Finance Agency (FHFA) announced on Sunday details of a rescue plan to place the government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac into government conservatorship.
UBS appoints Kengeter global head of FICC
Carsten Kengeter will join UBS in early 2009 as global head of fixed income, currencies and commodities (FICC), reporting to Jerker Johansson, Chairman and CEO of UBS Investment Bank. Johansson has been the interim head of the group after André Estevez…
Credit Suisse boosts Central Europe sales
Christian Porath has been appointed co-head of Securities Structured Derivatives Sales in Central Europe at Credit Suisse, with a focus on developing coverage of the banking sector in the region, including Germany, Austria, Poland, Hungary, the Czech…
Merrill raises the Mast for cross asset class exposure
Merrill Lynch has created Mast, a Multi Asset Strategy index based on investments across fixed income, currencies, commodities and equities. The asset classes are respectively represented in the index by Merrill’s 10-year US Treasury Futures Index (total…
Slowing inflation weakens structured note demand, Barclays Capital
Falls in the price of oil have weakened demand for inflation-linked structured notes, says Benoit Chiqrui, director of inflation trading at Barclays Capital in London. The recent US$40 fall in prices has caused inflation worries to fade along with demand…
Barclays releases ETN linked to Asian Currency Index
Barclays Capital has announced the listing of its Global Emerging Market Strategy (GEMS) Asia 8 exchange-traded note (ETN) on the New York Stock Exchange (NYSE) Arca platform. The ETN has a 30-year maturity and is linked to the GEMS Asia 8 index, which…