Derivatives - All Articles

  • ESMA rejects EC exemption for intragroup derivatives

    The European Securities and Markets Authority has raised concerns over the European Commission’s proposal for a three year exemption from clearing and collateral responsibilities for firms making intragroup interest rate derivatives transactions with third country entities, because such entities are not yet deemed to have regimes equivalent to the European Market Infrastructure Regulation.

    • 30 Jan 2015
  • TABB Forum: All eyes on MAC swaps

    Volumes in market adjusted coupon swap trading are increasing due to margin efficiencies, increased liquidity and the ease of trading, according to speakers at the TABB Forum Fixed Income 2015 conference in New York on Thursday.

    • 30 Jan 2015
  • Electronic trading move won’t eliminate volatility

    More swaps trading being pushed onto exchanges and other venues will not eliminate the presence of volatility in derivatives markets. However, the move to electronic trading has increased matched trades and efficient sourcing of capital.

    • 30 Jan 2015
  • Spain’s Isolux pulls €600m IPO as investors fail to offer right price

    Isolux Corsán, the Spanish energy and construction firm, last night pulled its €600m initial public offering, in the first blow to what has been Europe’s strongest ECM region so far this year.

    • 30 Jan 2015
  • Growing asset managers need to reduce their delta

    As buyside firms transact in ever larger volumes, asset managers need to reduce the delta risk, known as DV01, the change in the value of their trades caused by a basis point change in rates. However, this is very difficult as capital requirements for investment banks mean that a dealer’s ability to warehouse risk for its buyside clients is diminished.

    • 30 Jan 2015
  • Italy showcases QE effect with long dated private deals

    The Republic of Italy has nipped in with a couple of long dated privately placed deals that took advantage of the curve flattening in the euro market since the European Central Bank announced a programme of SSA bond buying just over a week ago.

    • 30 Jan 2015
  • Funding scorecard: supranationals

    This week's scorecard features updates on the progress of selected supranationals through their funding programmes.

    • 30 Jan 2015
  • Altice’s €4.8bn PorTel bond wins enormous oversubscription

    Altice on January 30 achieved a successful sale for its €4.8bn-equivalent bond package backing its takeover of Portugal Telecom.

    • 30 Jan 2015
  • Secondary pricing update: the QE shockwaves keep coming

    Intended or not, the European Central Bank’s plan to buy SSA paper in secondary markets once again made market watchers sea sick this week.

    • 30 Jan 2015
  • China State Shipbuilding joins caravan to the euro bond market

    China State Shipbuilding Corp is set to be the latest Asian issuer to tap the European bond market, after mandating banks for a debut which will be backed by a standby letter of credit (SBLC) from Bank of China.

    • 30 Jan 2015
  • Damovo bought out by Oakley, in partnership with Daisy Group

    Private equity firm Oakley Capital has agreed, along with Daisy Group as a minority partner, to buy Damovo Europe, a provider of enterprise communication technology.

    • 30 Jan 2015
  • Wendel wins tight NIP with huge book, so ups bond to €500m

    French investment company Wendel sold a €500m 12 year bond on Friday, having increased the deal in response to strong demand and favourable pricing.

    • 30 Jan 2015
  • GTech gets €800m loan the day before downgrade

    GTech, the Italian gambling equipment maker, completed an €800m term loan on Friday last week, the day before Standard & Poor’s and Moody’s downgraded it to junk.

    • 30 Jan 2015
  • IBA selects banks for ECP

    International Bank of Azerbaijan is meeting investors in conjunction with its establishment of a European Commercial Paper (ECP) programme.

    • 30 Jan 2015
  • Hope despite the obstacles: outlook bright for RMB in Korea, says KSD chairman

    It has been six months since South Korea formally became an offshore renminbi hub, with its own official clearing bank. The last year has seen a massive increase in RMB deposits, tripling to about Rmb120bn ($19bn), but Yoo Jaehoon, chairman and CEO of Korea Securities Depository, the country's leading custody and settlement services provider, tells GlobalRMB that the key issue for RMB development in the country remains the expansion of its use in the real economy.

    • 30 Jan 2015
  • Del Monte, EastWest Bank seek out rights issues

    Philippines and Singapore-listed Del Monte Pacific will raise S$208.60m ($156.43m) in a rights offering after pricing the transaction at S$0.33 or Ps10.60 a share.

    • 30 Jan 2015
  • India flings open books for $3.7bn Coal India selldown

    The Modi administration launched its up to Rp226.13bn ($3.68bn) offer for sale of shares in Coal India on Friday, a mammoth trade which could be one of India’s biggest yet.

    • 30 Jan 2015
  • GuocoLand seeks to open markets with S$170m bond

    The burst in activity in the Singapore bond market has continued this week, as property developer GuocoLand hit markets with the biggest trade so far this year. The company’s dual tranche offering brought in S$170 ($125m) along with hopes of more Singapore dollar issues to follow.

    • 30 Jan 2015
  • Magnum IPO: did you feel lucky?

    As expected, it hasn’t all been plain sailing for Asian IPOs so far in 2015. Macro events, chiefly in Greece and the Middle East, have taken their toll on regional issuance, as have increasing worries about China’s property sector. Even the mighty Alibaba hasn’t been immune to the doom and gloom, its share price in free-fall over a regulatory enquiry, writes Philippe Espinasse.

    • 30 Jan 2015
  • Pertamina nets $380m in general

    Indonesian oil and gas company Pertamina, which is in the market for $1.8bn five year loan, has received $380m in commitments in general. Bankers on the deal said they expect to close soon with allocations likely to be out in the next couple of weeks.

    • 30 Jan 2015