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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
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New contracts cannot yet be traded in US
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  • Asset managers have been piling into exotic conditional variance swaps on fx as a way to hedge equity portfolios from a possible double-dip recession. The swaps allow investors to take a view on the volatility of a currency pair at a pre-determined spot range, and, unlike variance swaps, include additional features such as an activation strike and a cap on returns.
  • European credit spreads rallied last week as the picture became clearer on the important bank stress tests.
  • Xtrakter said it is consulting with users of its over-the-counter post-trade services and other market representatives about creating a European-managed trade repository for all asset classes.
  • South Korea’s Financial Supervisory Service said five-year credit default swaps on the country’s sovereign debt have been steadily narrowing, returning to normal levels.
  • Credit Suisse reportedly is planning to spin off two credit hedge funds ahead of proposed financial reform that could limit its ability to provide them with capital.
  • Morgan Stanley has rolled out the FTSE Bonus 1 Fund, a UCITS III fund.