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Asian buyers driving callable SSA market have resurfaced in public benchmark deals
◆ 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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  • New legislation designed to stop hedge funds from using total return swaps to avoid paying withholding taxes on dividends has a big hole in it: it bans the TRS but doesn’t say anything about other derivative structures that have the same effect.
  • A proposal from the U.S. House of Representatives awaiting discussion in committee could reverse an old law that prevents mutual funds from investing directly in commodities.
  • Some U.S. derivatives professionals are looking towards structured products tied to longevity, instead of traditional swaps, as a means to spur the U.S. market and bringing it on a par with the relative boom seen recently in the U.K.
  • Dealers are estimating a 34% recovery rate at auction for triggered credit default swaps referencing Ambac Assurance Corp.
  • The European Commission will decide in October whether to ban naked sovereign credit default swaps.
  • Mark Green, a senior single stock equity derivatives trader at HSBC in London, has left the firm. He joined from Merrill Lynch last July (DW, 5/18) and according to headhunters is going to a hedge fund.