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Derivatives

BNP Teams Up With JPMorgan On Credit Index

BNP Paribas has agreed to make markets in JPMorgan's JECI 100 index. Antoine Chausson, head of structuring in the credit derivatives group at BNP Paribas in London, said the firms have agreed to a common term sheet and this should make the product more liquid. He stressed that clients are looking for independent products in which they know they can get tight bid/offers from competing firms.

The index allows investors to take, or lay off, exposure to 100 credits, about 75 of which are corporates, for a 3-4 basis point spread, said Chausson. He estimated that this is half the spread of putting on the component trades individually.

 

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