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CEB plans to print more structured notes and may launch inaugural Sofr bond in 2026
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  • Asset managers are increasingly trading products that are based on the Chicago Board Options Exchange Volatility Index on the back of a spike in volatility. According to UBS, asset managers are looking to the VIX as a tool for hedging, in addition to a product that they can trade in their clients’ portfolios.
  • Issuers are behind the rest of the market in obtaining the legal entity identifiers (LEIs) required by the Markets in Financial Instruments Directive to comply with transaction reporting, according to Mark Davies, general manager of Avox, who said that many issuers are not even aware that they must obtain an LEI.
  • The UK Structured Products Association has introduced a new set of risk ratings to enable financial advisers to compare different structured products more easily and help select products that match their clients’ risk profiles more closely. Up until now, there has been no numeric risk value assigned to structured products.
  • Overall interest rate derivatives trading that was reported to swap data repositories last week decreased by 9% from the previous week, according to data from the International Swaps and Derivatives Association.
  • Investors were seen looking at puts on the Australian dollar against the US dollar with a reverse knock-out, ahead of Tuesday’s Reserve Bank of Australia meeting, where the central bank unexpectedly cut its key rate by 0.25% to a record 2.25% low, causing the Aussie to weaken almost 2% against the dollar.
  • Short-end CNY swaps have been offered on easing liquidity pressures while the mid-sector has been bid on the recent rebound in oil prices. These opposing forces have hacked back some of the disinversion in the swap curve slope, writes Deirdre Yeung of Total Derivatives.