Structured products
US Wrap: Momentum accelerates towards week end
Issuance gathered pace yesterday as four providers launched a diverse spread of 18 products. Bank of America unveiled accelerated growth and kick-out structures, neither of which offered exposure to the usual S&P 500 index, but instead exposed investors…
iShares acquires Mexico’s Naftrac ETF
iShares has acquired the largest and first exchange-traded fund (ETF) in Mexico and Latin America. The Naftrac ETF follows the performance of the IPC (Indice de Precios y Cotizaciones), which is a Mexican stock market index.
BlueNext and Markit announce new carbon index
Environmental exchange BlueNext has announced that it will form a strategic partnership with financial information provider Markit, to create a range of emission index 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.