Structured products
UPDATED: CFTC plans speculation clampdown
The Commodity Futures Trading Commission (CFTC) will hold public hearings in July and August to discuss the need for federal position limits to be imposed on energy futures traders.
US Wrap: Morgan Stanley mixes fund and index for multiple exposure
The recent momentum in the US structured products market continued to the end of last week, with 13 new issues launched on Friday. Among the offering was an unusual six-month trade from Morgan Stanley which gives exposure to both European and emerging…
CDS premiums boost option participation in structured products
Participation rates and coupons in structured products are being boosted by premiums from credit default swaps (CDS) sold on sovereign and corporate entities, say dealers.
NYSE Liffe’s CDS clearing platform in doubt
The central clearing service for credit default swaps (CDS) offered by London-based derivatives exchange NYSE Liffe is “under review”, an official at the firm told Risk .
Oil & gas sector stung by Obama budget proposals
Tax changes proposed in President Obama's 2010 budget have raised concerns in the US oil & gas industry about supply security and price volatility. Pauline McCallion reports
UK chancellor warns bankers off a return to excess
Daily news headlines
Commodity structured products issuance fails to pick up, Barclays Capital
Commodity-linked structured and exchange traded products (ETPs) have suffered in the second quarter of 2009 as inflows into the investments have slowed, according to Barclays Capital.
US Wrap: Lively market focuses on energy and financials
The US market was showing convincing signs of life yesterday, with an impressive spread of 28 products launched by eight providers. The days of heaviest issuance have been dominated by reverse convertibles, but the structure only made up half of…
UK Wrap: Emerging Markets and bonds appear as underlyings
MSS has launched its first structured product in the UK market, offering a 100% capital protection. The six-year investment gives 100% participation in an equally-weighted basket consisting of four underlyings - subject to a maximum return of 45% growth.
Updated: Investec shares the wealth with income increase
Investec will increase the return on its five-year Capital Guaranteed FTSE 100 Income Plan 2 by 40 basis points due to changing market conditions.
Negative repos distort dividend hedging strategies
Abnormally low repurchase rates are forcing banks to hedge their dividend exposures with swaps instead of forwards.
Credit starts to flow, but more defaults ahead
Although credit availability has improved and lending costs have dropped in the UK, the rise in defaults is set to continue, according to the Bank of England's latest survey of the lending markets.
Barclays launches latest guaranteed deposit accounts
Barclays Capital, the investment bank division of Barclays Bank, has launched two more deposit accounts, as part of its structured deposit series for offshore bonds. The three-year guaranteed digital deposit account and the five-year guaranteed FTSE 100…
US Wrap: BofA looks to China for growth prospects
Bank of America has launched an accelerated growth note linked to the FTSE/Xinhua China 25 Index. The note lasts two years and pays 200% participation in the index up to a cap of 158.6%. It also incorporates a downside buffer of 10%.
CDS: Spreads continue to narrow on positive sentiment
Credit default swap 5-year mid-levels for structured products issuers (July 1)
Finra scrutinises muni-bond market; US Treasury creates Consumer Financial Protection Agency
The US Financial Industry Regulatory Authority (Finra) has launched an investigation into financial institutions' underwriting derivatives contracts used by US municipals to finance debt at lower costs.
Difference of opinion emerges on CDS fixed coupons in Europe
European credit derivatives traders remain divided on the number of fixed coupons that should be used for the trading of credit default swaps (CDS), just two weeks after the market was supposed to have switched to using only four standardised coupons.
CMBS re-Remics could make Talf obsolete
A wave of downgrades to highly rated commercial mortgage-backed securities (CMBS) is threatening plans by the US Federal Reserve to rehabilitate the market for existing deals. But a recent trend towards restructuring the transactions could render the…
Exelon increases NRG offer
Exelon Corporation has increased its offer to acquire all of the outstanding NRG common stock by 12.4%.