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◆ Public sector issuers embrace hedge fund bid... ◆ ... as they flex in the swap market ◆ Car makers welcomed back to bond market
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New contracts cannot yet be traded in US
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  • Trading of credit default swaps contracts on Italian sovereign debt rose to 867 trades, its highest level in a year in the week ended July 15—almost double the previous week, according to the Deposit Trust & Clearing Corp.
  • Credit default swap spreads on European sovereign debt continue to widen despite results of recent stress testing that indicate all but eight passed, according to Fitch Solutions.
  • U.S. District Judge Barbara Jones of Manhattan has thrown out a lawsuit by Australian hedge fund Basis Capital because the firm failed to show that any purchases of credit default swaps took place in the U.S.
  • Costs associated with interest rate swaps are heading higher even before the derivatives regulations under the Dodd-Frank Act have been finalized.
  • The London Stock Exchange will focus on derivatives, fixed-income and technology sales to generate profits, according to Xavier Rolet, the LSE’s ceo.
  • Bank of America Merrill Lynch has launched BofAML Express, an ultra low-latency market access and risk control platform for U.S. equities.