Derivatives - All Articles

  • New Sants goes marching in at Barclays as penalties bite

    Barclays has appointed a new group head of compliance, to replace former regulator Hector Sants, who left the UK bank in November last year on the grounds of stress and exhaustion. The announcement comes as Barclays prepares to release its fourth quarter results, which are understood to contain another set of hefty penalties for misconduct.

    • 31 Jan 2014
  • “We get no pressure from our equity partner Blackstone. It’s not even in discussion.”

    --Mark Floyd, ceo of Exeter Finance Corp., responding to the claim that the firm’s private-equity backers may be pressing too hard for returns, which may have contributed to its recent management turnover.

    • 31 Jan 2014
  • Barclays Tips 10 Names On CDX IG

    Strategist at Barclays in New York have identified 10 names with a greater widening-to-tightening ratio in the North American CDX investment grade index than the index itself, for investors looking for a more favorable risk-reward trade-off than the index.

    • 31 Jan 2014
  • Barclays' Macdonald leaves loan role, more cuts to come

    Barclays swung the axe last week as up to five loans bankers are thought to be facing job losses. Jonathan Macdonald, the bank's managing director, head of loan syndicate for EMEA and Asia Pacific, has already been notified that his position is under review.

    • 31 Jan 2014
  • “We have been looking for the most efficient methods to implement smart passive strategies. NYSE Liffe futures provide us with our preferred smart passive strategy in one transaction.”

    —Chris Darbyshire, cio of Seven Investment Management, on the move by NYSE Liffe to launch futures on MSCI Factor Indices.

    • 31 Jan 2014
  • One Year Ago

    UBS Securities was in plans to offer onshore total return swaps referencing Chinese A-shares, and separately offer equity-linked structured products via a special purpose vehicle structure, such as a trust or a mutual fund, on the back of a relaxation of propriety trading rules.

    • 31 Jan 2014
  • Altice adds value in aftermarket after astute allocations

    A €1.305bn IPO for French cable firm Altice, the largest flotation on Euronext Amsterdam since 2006, has outperformed bankers’ expectations, in some of the most volatile markets for months.

    • 31 Jan 2014
  • Wells, Other Banks Said To Turn Heat Up On CLO Managers

    Wells Fargo and other banks are pressuring managers of the collateralized loan obligations they hold to restructure them to be Volcker-compliant, sometimes as a precondition to buying new deals from those managers, according to people familiar with the matter. Spokespeople at Wells were not able to comment by press time.

    • 31 Jan 2014
  • Naked Sov CDS Ban Could Permanently Damage E.U. Market

    The ban on uncovered sovereign credit default swap trading in Europe could permanently impair E.U.-regulated sovereign CDS markets and cause further market stress when combined with European Central Bank tapering, bank failure and lack of liquidity.

    • 31 Jan 2014
  • Comcel debut surprise brings life to EM high yield

    Guatemalan mobile company Comcel sold $800m of 10 year non-call five bonds on Thursday, defeating the expectations of some EM syndicate bankers who believed that the market was not ready for LatAm high yield borrowers.

    • 31 Jan 2014
  • Linklaters joins HSBC on UK sukuk team

    The UK government has appointed law firm Linklaters to act as legal advisor to assist the UK Treasury in preparing for the country's debut sukuk.

    • 31 Jan 2014
  • GTT hopes LNG exposure helps it sail through volatility

    Gaztransport & Technigaz (GTT) launched a €500m IPO on Friday, with bankers hoping that the French liquefied natural gas container manufacturing firm's exposure to a sought-after sector helps it sail through market volatility.

    • 31 Jan 2014
  • EBA opts for more lenient threshold for EU stress tests

    The European Banking Authority has shaved 50bp off the minimum capital ratio banks must have after the adverse scenario to pass its 2014 stress tests, prompting some market participants to suggest it is being too lenient.

    • 31 Jan 2014
  • Goldman’s Chavez To Receive Outstanding Contribution Award

    R. Martin Chavez, chief information officer for Goldman Sachs in New York, will receive the Outstanding Contribution Award at the Americas Derivatives Awards on April 22. Chavez, who was selected for the award by senior buyside and sellside officials active in the derivatives markets, will be honoured for his contribution to the development of the derivatives market through his role at the International Swaps and Derivatives Association, as well as his success in developing Goldman’s Equities Franchise, among other areas. The full list of award categories and nominees can be accessed at www.derivativesweek.com.

    • 31 Jan 2014
  • EM Names Trigger Vol

    Emerging markets have a habit of triggering volatility compared to their developed market counterparties, as we have seen several times over the last 30 years. The trend was evident towards the end of January with fairly large swings in credit and equity.

    • 31 Jan 2014
  • LMA to produce template docs for European PPs

    The Loan Market Association has formed a working party to produce a template document for use in European private placement transactions.

    • 31 Jan 2014
  • ICBC in $765m deal for Standard Bank's UK arm

    The rise of Chinese bank's activity in EMEA took a leap forward this week after Industrial and Commercial Bank of China announced that it is buying a controlling stake in Standard Bank's London-based global markets business.

    • 31 Jan 2014
  • High yield bid rock steady as issuers defy EM sell-off

    When the going gets tough, high yield investors often get going, too — out of the door. So far, in this bout of tapering-induced risk-aversion, that has not happened. While stockmarkets sold off this week, CDS indices widened and emerging market bonds plunged, high yield issuers in Europe kept launching and printing bonds, writes Stefanie Linhardt.

    • 31 Jan 2014
  • New Issues 1339

    This weeks new issues

    • 31 Jan 2014
  • ICBC aiming to branch out into EMEA loan market

    The rise of Chinese banks in the EMEA loan market seems to be inevitable. Regulatory changes will allow Chinese subsidiaries to apply for branch status in the UK, opening up the vast balance sheets of parent banks for the first time. Loans bankers at western houses have been keeping a close watch on these sleeping dragons, which this week made their intentions outside of China clear when Industrial and Commercial Bank of China (ICBC) entered into an agreement to buy Standard Bank’s UK arm (see separate story). But this isn't the first move that the Chinese behemoth has made to expand in Europe. Last April, Benny Zachariah was hired to ICBC London with the task of setting up the bank’s loan sales and syndication desk. He talks to EuroWeek’s Michael Turner about the bank’s ambitions.

    • 31 Jan 2014