Structured products
Credit Markets Update: Spreads volatile in Fiat and France Telecom
Five-year credit protection levels for debt-heavy Italian industrial conglomerate Fiat bounced from 360 basis points-mid on Monday, to 405bp on Tuesday, to 355bp by today’s end, according to data from credit derivatives broker GFInet. Traders said the…
Australian banks heading for advanced IRB
Australia’s four major banks are making good progress in implementing strategies and systems for Basel II, with all four banks targeting the advanced internal ratings-based (IRB) approach, according to rating agency Standard & Poor’s (S&P).
Enron collapse a big blow to Europe’s energy markets, says EDF head
The collapse of energy trader Enron has caused a major blow to market confidence in Europe, said Francis Hervé, chief executive of EDF Trading, the London-based trading subsidiary of Electricité de France (EDF).
Munich Re to set-up firm-wide ART business
German reinsurer Munich Re is forming a group-wide alternative risk transfer (ART) unit, in a move designed to strengthen its position in the growing alternative markets business.
Credit Markets Update: Spreads widen on ABN Amro subordinate debt
The cost of five-year subordinate credit protection on ABN Amro widened several basis points to 38bp-mid as bond-holders bought protection after Moody's placed its Aa subordinate debt rating on negative review on Wednesday.
Swiss Re launches $2 billion catastrophe securitisation programme
Swiss Re Capital Markets has begun marketing a $225 million catastrophe bond offering, the first part of a $2 billion programme, that securitises Swiss Re’s reinsurance exposure to five types of earthquake and hurricane risk.
JP Morgan Chase may exit European energy business
JP Morgan Chase has lost nine of its energy derivatives traders, fuelling speculation that the US investment bank may close its energy operations, at least in Europe, following widespread cost-cutting and restructuring.
Hedgeworld launches due-dilligence reports
Hedgeworld and National Collection Center Group of the US have launched a series of internet-based reports on hedge fund managers for investors. 'Hedgeworld manager background reports' were designed to allow investors to conduct due-diligence into…
Asian investors look to structured credit
Low interest rates and tight credit spreads are fuelling an interest for structured credit products in the Asia-Pacific region, according to bankers. And a variety of structured and hybrid products are now being marketed to Asian investors there.
Credit Markets Update: Telekom bond re-pricing rumours pull in telco spreads
Rumours of heavy over-subscription and a possible re-pricing on Deutsche Telekom’s forthcoming €5 billion bond issue caused five-year credit default swaps on Germany’s main telecommunications company to tighten 10 basis points today to 220bp/230bp. The…
Asset managers point to growing importance of credit derivatives
Dutch asset manager Robeco and London-based Cheyne Capital Management say knowledge developed through managing synthetics is allowing them to use credit derivatives more extensively. Both have new synthetic collateralised debt obligations (CDOs) in the…
Merrill’s debt protection costs fall following Spitzer deal
The cost of protection on Merrill Lynch senior five-year debt narrowed 25 basis points to 65bp/75bp today following the firm's settlement with New York attorney general Eliot Spitzer.
Basel II won’t affect most US banks, central banker says
The Basel II bank capital Accord will have virtually no effect on most US banks, US Federal Reserve Board vice-chairman Roger Ferguson said today.
Primus lures in Swiss Re’s Schaumann plus other key staff
Hilmar Schaumann, a senior credit derivatives trader for Swiss Re in New York, has quit the firm to join Primus Financial Products, a wholesale provider of credit risk protection.
Currency overlay may see strong growth in US
Currency overlay – the management of currency exposures in an investment portfolio separate from underlying asset exposures – is set to increase in the US at a rapid rate, claimed speakers at a global foreign exchange conference hosted by Deutsche Bank…
SunGard cites slow portal take-up as it closes multi-bank FX
Another chapter charting the rise and fall of multi-bank trading platforms was completed last week, with the closure of technology firm SunGard’s multi-bank foreign exchange portal.
Credit Markets Update: Repsol spreads fluctuate on disposal plans
The cost of credit protection on Spanish energy company Repsol fluctuated in a 50-basis point range yesterday, as traders took different stances on the impact of its planned disposal of a 23% stake in Spanish energy company Gas Natural.
Rates Markets Update: Swap activity dominated by interest rate speculation
Euro swap rates pushed up following increased expectations of an early European Central Bank (ECB) interest rate hike this week. Two-year swap yields rose by around 10 basis points on the week, five-year yields moved up 6bp, and 10-year to 30-year yields…
Structured vehicle link to fund of funds to widen client base
CDOs have been restructured for the fund of hedge fund market
In the line of Duty
Will the UK Government turn to CFDs to build up its tax reserves?
Operation information
Although the industry has undertaken work to improve the transparency of hedge porfolios, fund managers' opinions differ over just how transparent funds should be