Structured products
US Wrap: Morgan Stanley offers Brazil through Exportfinans
Morgan Stanley has launched a new note offering exposure to the iShares MSCI Brazil Index fund. The external credit of Eksportfinans has been used to package the six-month trade, which gives an annualised coupon of 11-15% provided that the fund stays…
Credit Suisse builds up commodity indexing business with three hires
Credit Suisse has made three new hires in its commodities business, including Dan Raab, who formerly looked after the global development of American International Group's (AIG) commodity index. The bank has tapped Merrill Lynch for the remaining hires,…
Lack of liquidity means a comeback for vol swaps
Dynamic replication of the payoff of volatility swaps on single stocks in illiquid markets is cheaper and easier than replicating variance swaps payoffs, dealers say.
Spanish rules cushioned banks from the crisis, says top regulator
In an exclusive interview with Risk , José María Roldán, director-general of banking regulation at the Banco de España, explains how a unique regulatory framework has led Spanish banks to adopt prudent trading and risk management processes that paid off…
Source links to new Dow Jones long/short index
Source has launched 18 exchange-traded funds linked to the Dow Jones Stoxx 600 Optimised Super Sector index range. The index range was created by the ETF provider and DJ and represents a new generation of funds created to deliver exposure to improved…
CDS: Narrowing continues across issuers
Credit default swap 5-year mid-levels for structured products issuers
UK Wrap: Cater Allen lone presence with double digit headline rate
Cater Allen Private Bank was the only issuer with a product in the UK market last week, offering a headline rate of 37% for its FTSE-linked product. The plan comes with two maturity options - either three and three quarter years or five-and-a-half years…
US Wrap: New stocks on the reverse convertible menu
Five new reverse convertibles have been released into the US market, offering exposure to three stocks absent from the space for at least a year. The new underlyings include equity from energy and credit companies.
Eurex CDS clearing solution to start on July 30
Eurex will begin clearing European index and single-name credit default swaps (CDS) as of July 30, the exchange said today.
US Wrap: JP Morgan offers European growth with downside gearing
JP Morgan has launched a new accelerated growth note linked to the DJ Eurostoxx 50. The note offers 200% participation in the index over six months, with 111.11% participation in downside losses. Upside returns are capped at 10%.
Market uncertain over oil price direction
Analysts at investment banks are divided in their views over the average price of crude oil for the rest of 2009 and into 2010.
Leverage ratios are "counterproductive", says IIF
In a new report on how to strengthen financial regulation, the Institute of International Finance (IIF) has proposed some measures directly at odds with options currently being explored by regulators in both Europe and the US.
Capital protection and equities to lead US demand, Barclays Capital
Structured investments in the US are set to outpace the overall growth of other investments over the next two years, according to a survey of financial intermediaries, including wealth managers and broker dealers with US$6 trillion assets under…
Regulators and banks reach buyback agreement on Minibonds
The Hong Kong Monetary Authority (HKMA) and Securities and Futures Commission (SFC) have finally reached an agreement with 16 banks that distributed Minibonds, including ABN Amro and the Bank of China, to repurchase the Lehman Brothers-backed products…
RBC Wealth Management adds Afzal for structured notes
Wasim Afzal has joined RBC Wealth Management as manager to its structured notes and fixed income, advisory team. Afzal will be responsible for developing the structured notes offering for its high net worth (HNW) and ultra HNW clients
SIM takes from Barclays Capital for team expansion
Structured Investment Management (SIM) in New York has made three new hires in an expansion of its team. The new appointments include Mark Graham as executive vice-president of structured finance, who was previously head of corporate solutions and hybrid…
US Wrap: Reverse convertible market drills down to oil stocks
Reverse convertibles dominated yesterday's issuance in the US market, representing 10 of the 13 new structures issued. Two of the new notes offer exposure to oil - one through offshore drilling company Transocean, and the other through Interoil. The…
CFTC sets dates for position limits hearings
The Commodity Futures Trading Commission (CFTC) will hold the first of three open hearings to discuss energy position limits and hedge exemptions on July 28, 2009.
Q2 profits a false dawn for banks, Moody's says
Rising funding costs, continuing writedowns and the withdrawal of government support could push the global banking industry back into crisis, analysts warned this week.
US Talf helps CMBS market recover
The Federal Reserve Bank of New York's Term Asset-Backed Securities Loan Facility (Talf) is helping to revive the commercial mortgage-backed securities (CMBS) market, analysts have concluded, although the chances for residential mortgages to be included…
Source adds three to bolster European presence
Source, the exchange-traded product (ETP) distributor, has made three new hires to its European sales team as part of its expansion effort. The open architecture provider has ensnared individuals from Lyxor Asset Management, ETF Securities and Unicredit…