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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
CEB plans to print more structured notes and may launch inaugural Sofr bond in 2026
SSA
New contracts cannot yet be traded in US
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  • Morgan Stanley has launched a 12-year callable note with a conditional 7-7.3% annual coupon referencing the S&P500. The conditional coupon payment kicks-in after the first year as long as the S&P 500 sits above 750 on every quarterly observation date.
  • Dealers have been renegotiating the credit rating trigger levels in new master agreements with pension funds over the last quarter.
  • Citigroup is rolling out a new issue of unfunded synthetic balance sheet collateralized loan obligation notes from its Terra II CLO program.
  • Mary Johannes, director of U.S. public policy at the International Swaps and Derivatives Association, said she believed the U.S. over-the-counter legislation and regulation had a 50/50 chance of passing, at the ISDA annual regional conference in New York. [President Barack Obama signed the U.S. Dodd-Frank Act into law July 21 and the sweeping changes it will bring to the OTC industry have been the subject of constant debate, including at this year's ISDA annual regional conference (see conference coverage).]
  • --Chris Bates, partner at Clifford Chance, on the difference in how European and U.S. lawmakers have approached to derivatives legislation..
  • Almost all of International Swaps and Derivatives Association's primary members will be captured in the U.S. Commodity Futures Trading Commission and the U.S. Securities and Exchange Commission's definition of a swap dealer, Gary Gensler, chairman of the CFTC, said last week at the International Swaps and Derivatives annual regional conference in New York. It could mean that institutions other than dealers, such as insurance companies and corporates, could be caught under the definition.