Structured products
Update: Liquidity check goes live on Scoach
Scoach has launched a new tool for investors to check the quality of market makers for listed structured products online. The system, which is called Quote Quality Metrics (QQM), has been introduced by the Swiss structured products exchange to inject…
US Wrap: Single product gives slow end to week
Listed issuance in the US reduced to a single product on Friday January 23: a 100% principal protected Absolute Return Barrier note, linked to the performance of the S&P500 index and issued by UBS. The note has a two-year life and will settle on January…
ING CEO and 7,000 workers fall victim to €3.3 billion losses
After losing an estimated €3.3 billion in the last quarter of 2008, ING will lay off 7,000 employees, along with chief executive Michel Tilmant.
Inflation-linked bonds see possible recovery
After months of poor trading, linked to the banking crisis and sagging commodities prices, breakeven rates on US Treasury inflation-protected securities (Tips) have started to rise from their November lows, suggesting investor interest is returning to…
Freight derivatives market shifts further towards clearing
Fears of counterparty credit risk have led to a sharp migration towards clearing in the freight derivatives market over the past four months. The ratio of cleared forward freight agreement (FFA) trades to non-cleared over-the-counter trades in the last…
Hedge funds disclosure of op risk exposures inadequate
Editor's blog
US Wrap: Growth products lead the pack
Nine deals were filed and launched in the US structured products market yesterday, with half the issuance made up by accelerated growth products. JP Morgan fed the confounding appetite for US equity exposure with a 300% leveraged participation rate in…
CDS: Levels for Wednesday and Thursday flat ahead of the weekend
Credit Default Swap 5-year senior mid-levels for structured products issuers (Wednesday January 21 & Thursday January 22)
BoJ plans to inject $34bn to aid corporate funding
The Bank of Japan (BoJ) has become the latest central bank to unveil plans aimed at bolstering the corporate debt market, with plans to buy up to ¥3 trillion ($33.7 billion) of outstanding commercial paper (CP) to help ease funding pressure suffered by…
Cash-settlement auctions working, says Isda
The auction process for cash-settling credit derivatives trades has been tested recently but is working well, said Bob Pickel, chief executive of the International Swaps and Derivatives Association, at a symposium held by the organisation in New York on…
SHKF buys back clients' minibonds
Hong Kong-based Sun Hung Kai Financial (SHKF) has agreed to buy back all the Lehman Brothers credit-linked minibonds it sold to retail investors. The decision follows an investigation by the territory's Securities and Futures Commission into possible mis…
Sun Hung Kai agrees to US$11m Minibond buyback after SFC concerns
Sun Hung Kai Investment Services has voluntarily agreed to purchase all outstanding Lehman Brothers Minibonds bought by eligible clients after the Hong Kong Securities and Futures Commission (SFC) issued a reprimand over the sales of the products since…
UBS exits exotic structured products business in FICC
UBS is fully exiting its exotic structured products business within its fixed income, commodities and currencies (FICC) division, the bank has confirmed. As part of the restructuring, four senior managing directors have left the bank: Todd Morakis, head…
S&P unveils CDS indexes
Index provider Standard & Poor's Index Services (S&P) has launched three US credit default swap (CDS) indexes designed to evaluate the performance of the credit derivatives market.
CDS: Levels are only going wider
Credit Dafault Swap 5-year mid-levels for structured products issuers (London close, Tuesday January 20)
S&P launches CDS indexes on US market
Index provider S&P has launched three S&P CDS US indexes, which are designed to provide exposure to the performance of the US credit default swap (CDS) market. The indexes can be used as underlyings for financial instruments such as structured products…
Fund-linked hedging bolsters redemption requests
The rise in redemptions across the hedge fund industry is being exacerbated by the hedging of fund-linked options and constant proportion portfolio insurance (CPPI) products, according to dealers.
King lays out details of Bank of England debt purchases
The Bank of England will start to buy up corporate debt and commercial paper within the next few weeks, governor Mervyn King announced last night.
Culross launches listed Nomura note for UK investors
Culross Global Management, the UK-based investment manager, has unveiled a new listed note linked to two of its proprietary funds. The Nomura Culross Alpha note will be listed on the London Stock Exchange, and the Japanese bank that issued the sterling…
CDS: RBS holds in at 124.3bp despite share sell-off
Credit Default Swap 5-year senior mid-levels for structured products issuers (Monday January 19)
UBS buys AIG commodity indexing business
UBS has announced that it will acquire the commodity index business of AIG Financial Products Group. The deal includes the rights to the Dow Jones-AIG Commodity Index, an industry benchmark launched a decade ago.
PWG committees release hedge fund best practices
Daily news headlines
Investec unleashes bull/bear product for retail
Investec Structured Products has released a retail version of its one-year structured deposits, as a result of high interest from advisors. The 1 Year Range Deposits are fully capital guaranteed and deliver returns linked to the FTSE 100 index, according…
UBS buys AIG commodity indexing business
UBS has announced that it will acquire the commodity index business of AIG Financial Products Group. The deal includes the rights to the Dow Jones-AIG Commodity Index, one of the industry benchmarks which was launched a decade ago.