CDS-cash basis drives pension funds to renegotiate mandates

Pension
By Hazel Sheffield
24 Mar 2014

Pension funds and endowments in Europe are renegotiating their trading mandates to exploit the positive credit default swap-cash basis.

Soren Willemann, credit strategist at Barclays in London, told GlobalCapital that some managers are talking to clients about extending their trading mandates to allow them to play the positive basis by selling their bonds and selling CDS protection at a wider spread level. “This is something we are ...

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