Structured products
Hess leaves Goldman Sachs and returns to Citi
Dirk Hess has joined Citi as a director in the EMEA retail structured products business. Hess will split his time between London and Frankfurt, and be responsible for working across the sales, marketing and new issuance teams to build out Citi's cross…
US Wrap: ABN picks up reverse convertible pace
ABN Amro launched six new reverse convertible products into the US market yesterday, mainly focusing on energy and metals. In the latter sector, exposure to steel, copper, gold and aluminium was offered through three different notes. Alcoa, which…
European CDS dealers closer to restructuring solution
European derivatives dealers have agreed on a provisional framework to integrate restructuring as a credit event into the auction process for the cash settlement of credit default swaps (CDSs), taking the market a step closer to central clearing.
Geithner calls for law change to force OTC derivatives clearing
The US Treasury called upon Congress yesterday to amend the Commodities Exchange Act (CEA) to compel the "clearing of all standardised over-the-counter derivatives through regulated central counterparties".
UK inflation will stay low for some time, BoE says
UK inflation will drop below the Bank of England's (BoE) 2% target later this year and remain there "for the medium term", the central bank said in its quarterly inflation report, published today.
UK Treasury releases investment bank insolvency report
Daily news headlines
US Wrap: Acceleration steps back into fashion
Accelerated growth products were back in fashion yesterday in the US new issuance market, producing eight of the 13 products released The remainder were reverse convertibles, continuing the return of the recently beleaguered structure. For underlyings,…
Selling pressure lifts on dividends
Implied dividends of European stocks, derived from the prices of dividend swaps on the DJ Eurostoxx 50 index, have rallied sharply, reflecting growing confidence about the future of the equity market.
Ambac makes $1.539bn derivatives gain
Ambac reported a massive $1.539 billion mark-to-market gain on credit default swaps (CDSs) in the first quarter – an upswing largely due to its own deteriorating financial condition.
Bowater worth 15%, according to credit derivatives auction
An auction held on May 12 determined a final settlement value of 15% for credit default swaps (CDSs) referencing North American newsprint manufacturer Bowater, which filed for Chapter 11 bankruptcy on April 16.
CDS: Narrowing excludes major European players
Credit default swap 5-year mid-levels for structured products issuers (Friday May 8)
US Wrap: Reverse convertible bets on derivative stock
Barclays Bank has launched a new reverse convertible linked to the stock of InterContinental Exchange, which operates online trading for over-the-counter derivative products. The note lasts six months and pays a 17.25% annualised coupon, with a stock…
UK Treasury: "vital" to expand resolution powers for investment banks
The UK government needs to update its approach to resolving failed investment banks in the wake of the collapse of Lehman Brothers in September last year, according to a Treasury report published today.
US Wrap: Natixis goes heavy on metal with new note issue
Natixis launched four reverse convertible products in the US market yesterday, including notes linked to the stock of US Steel and Chicago Bridge & Iron Company. It is using the external credit of Eksportfinans to issue all the notes, rather than its own…
CDS: Pressure eases on Citigroup as narrowing continues
Credit default swap 5-year mid-levels for structured products issuers (Thursday May 7)
Dow Jones-AIG Commodity renamed through UBS acquisition
UBS has announced that Dow Jones-AIG Commodity Indexes have been renamed Dow Jones-UBS Commodity Indexes following the completion of its acquisition of the commodity index business of AIG Financial Products.
Primus explores new CDPC model
Primus Guaranty, the Bermuda-based credit derivatives product company (CDPC) and asset manager, is looking into the possibility of setting up a new entity to sell credit protection, but unlike its existing business model, the new venture would post…
Uncertainty remains over EU securitisation retention charge
The European Union (EU) is pressing ahead with plans to amend the Capital Requirements Directive (CRD), but has failed to reach consensus on its controversial plan for a 5% securitisation retention charge.
US banks require $74.6 billion in additional capital, stress tests reveal
Ten US banks collectively require an additional $74.6 billion in additional capital to insulate against possible losses over the next two years, the results of US government stress tests show.
US Wrap: ABN cuts in to reverse convertible space
ABN Amro has joined the latest bout of reverse convertible issuance kicked off by Barclays earlier this week. The Dutch bank has launched five notes, one of which is a three-month product linked to the stock of Intuitive Surgical that offers a 23%…
Early day motion urges investigation into structured products
An early day motion has been tabled in the UK Parliament calling for an investigation by the Financial Services Authority (FSA) on behalf of investors who lost money after buying structured products backed by Lehman Brothers.
Central banks continue to expand support in face of deflation threat
The Bank of England and the European Central Bank both announced expansions to their monetary stimulus programmes today, warning that low inflation or deflation remained a threat.
SEC roundtable: circuit breakers most favoured short-selling rule
Participants favoured circuit breakers, which halt trading in volatile markets, over other proposed short-selling restrictions discussed at the US Securities and Exchange Commission's (SEC) roundtable on May 5.
Barclays Wealth offers US exposure to Super Tracker investors
Barclays Wealth has launched the latest version of its FTSE tracker product, which features an S&P 500 option that gives investors accelerated participation in the US index. In a market usually limited to UK equity, investors will now be able to opt for…