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  • Barclays, Deutsche dodge losses thanks to risk transfer market but investors tighten terms

    Barclays, Deutsche dodge losses thanks to risk transfer market but investors tighten terms

    The synthetic risk transfer market helped some of Europe’s biggest banks dodge loan losses last year, with Barclays saving more than £300m and Deutsche at least €150m. But the backdrop last year led to investors taking a tougher line on writing new credit protection, steering clear of pools with limited disclosure and hoping to dodge the most damaged sectors.

  • Europcar CDS worthless as auction misfires

    Europcar CDS worthless as auction misfires

    Some €700m of CDS contracts referencing Europcar’s debt have been rendered worthless thanks to a technical squeeze in the CDS auction on Wednesday, in a blow for investors who thought they’d hedged their exposure to the troubled car rental firm. The controversial result threatens to reignite debates about whether the CDS market is fit for purpose, ahead of an expected wave of restructurings in the year to come.

  • Ex-Mizuho risk transfer banker lands at Munich Re

    Ex-Mizuho risk transfer banker lands at Munich Re

    Juan-Carlos Martorell, who jointly ran the risk transfer and structured solutions group at Mizuho, and before that, Lazard, has joined Munich Re Markets to work on origination, structuring and risk distribution, according to LinkedIn.

  • Trading equivalence judgments uncertain

    Trading equivalence judgments uncertain

    The lack of clarity over whether the UK and the EU will clinch a trade deal before the end of the year also makes it harder for those in financial markets to know whether equivalence decisions will be granted for the trading obligations for derivatives (DTO) and shares (STO).

  • SSD privacy hampers deliverability with CDS auctions

    SSD privacy hampers deliverability with CDS auctions

    Whether or not Schuldschein debt is deliverable under CDS auctions is becoming more than an academic discussion, as analysts look to companies like travel firm Tui’s financial future. While the instrument fits the criteria as relevant debt for a CDS auction, the private nature of the contract could prevent the Determinations Committee from ruling.

  • ESMA: no change to derivs trading rule

    ESMA: no change to derivs trading rule

    As market participants prepare for the end of the Brexit transition period on December 31, the European Securities and Markets Authority has said it will not change requirements on where derivatives can be traded, even though this could cause problems for UK branches of EU investment firms.

  • CFTC and BoE tie up clearing agreement

    The US Commodity Futures Trading Commission and the Bank of England signed a memorandum of understanding on Tuesday regarding the oversight of derivatives clearing.

  • Permira splashes cash on Lowell rescue ahead of 2021 NPL splurge

    Permira splashes cash on Lowell rescue ahead of 2021 NPL splurge

    Permira opted to rescue its debt purchasing portfolio company Lowell from the restructuring that many thought was imminent, with the largest slug of equity support any sponsor has injected in Europe since the coronavirus pandemic began. Covid-19 has crushed cashflows for some debt purchasers, but next year should be a bumper year for NPL buying — for those firms with cash to do so, writes Owen Sanderson.

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