Structured products
DTCC launches weekly CDS update
The Depository Trust and Clearing Corporation (DTCC), the largest derivatives clearing house in the US, released its first weekly snapshot of the credit derivatives market yesterday.
Ambac and MBIA record heavy Q3 losses
Battered by mortgage-related positions and credit losses, bond-insurance companies Ambac and MBIA both took a hit in the third quarter.
CDS losses hit Swiss Re
Swiss Re, the world’s second largest reinsurer, has reported a third quarter net loss of SFr 304 million ($262 million) after being hit by heavy mark-to-market writedowns on its structured credit exposures.
Lyxor to list five ETFs on SGX
Lyxor International Asset Management (Lyxor AM) will launch five exchange-traded funds (ETFs) on the Singapore Stock Exchange (SGX) on November 5, with a focus on Asia and commodities. The Lyxor ETF MSCI Asia Apex 50 will be the first ETF to track the…
Barclays Capital builds up indexes after Lehman acquisition
Barclays Capital has rolled out the re-branded version of the Lehman Brothers index platform that it acquired as part of its takeover of the now defunct US investment bank. Barcap has confirmed that the calculation of the indexes will continue as before,…
Barclays releases Guaranteed Deposit Accounts for offshore bonds
Barclays Capital has launched two deposit accounts as the latest in its structured deposit series for offshore bonds. The five-year Guaranteed Arabia Titans 50 Deposit Account provides exposure to 50 leading Arab stocks, represented by the Arabia Titans…
Carbon and waste ETFs hit Euronext Paris
EasyETF listed both low carbon and global waste exchange-traded funds (ETFs) on NYSE Euronext today. The EasyETF Low Carbon 100 Europe offers investors exposure to 100 blue-chip European companies that have the smallest carbon footprint relative to their…
Direxion burst into ETF market with eight leveraged ETFs
Direxion, a provider of alternative investment strategies, has entered the exchange-traded fund (ETF) arena with eight leveraged bull and bear ETFs, offering 300% leveraged exposure. The Direxion Shares 3x ETFs provide 300% of the daily performance, or…
RBS announces further credit market hit
Royal Bank of Scotland (RBS), one of three British banks to receive capital injections under a £50 billion government bailout package, on Monday announced writedowns of £206 million of credit assets in the third quarter, following £5.9 billion of…
UK government sets up investment manager
Daily news headlines
SG takes a €370m hit on exotics and €447m loss on Lehman in Q3 2008
SG Corporate & Investment Banking reported a 14.3% increase in equity flow business over the third quarter of 2008, compared to the same quarter of 2007; also a 17.4% increase on the previous quarter. “However, structured products were penalised by an…
Morgan Stanley launches four new plans for UK
Morgan Stanley has launched four new structured products for UK retail investors including three protected growth plans and a capital plus plan.
HSBC launches government-guaranteed steepener in US
HSBC has launched a new rates-linked certificate of deposit (CD) in the US. The deposit product lasts 15 years and is linked to the spread between 30 and five-year constant maturity swap (CMS) rates.
Keydata International releases Renewable Energy Fund
Keydata International has launched its Renewable Energy Fund, offering returns generated by the development and operation of a range of small-scale Renewable Energy Power Plants (Repps) across Europe, covering the UK, Germany, Italy, Sweden and Spain.
Close of Constellation credit facility extended
Constellation Energy’s credit facility with UBS and RBS will now close on 26 November 2008 with commitments from the banks expected to total between $1bn and $1.25bn.
November target for CDS central counterparty
Dealers have pledged to the Federal Reserve Bank of New York to begin using a central counterparty for clearing credit derivatives by the end of November.
Bernanke: covered bonds "attractive" replacement for GSEs
Government-sponsored enterprises (GSEs) could be replaced by a US mortgage-backed covered bond market, Federal Reserve chairman Ben Bernanke suggested on Friday.
Hedge funds harness volatility in turbulent markets
Trading volatility can help hedge funds to diversify their portfolios and generate alpha in a challenging market. Kris Devasabai and Stephen Quigley report on the strategies employed by volatility traders and its emergence as an asset class