Credit

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  • US gives sweet SA-CCR relief

    US gives sweet SA-CCR relief

    US market participants’ can now use their preferred method of calculating counterparty credit risk (CCR) for derivatives, after US regulators brought the adoption of SA-CCR forward.

  • Derivatives industry pushes for IM relief amid uncertainty

    Derivatives industry pushes for IM relief amid uncertainty

    Financial market trade associations are pushing regulators to give relief on incoming regulatory requirements on initial margin, pleading that the coronavirus is causing too much disruption to their members’ business lines.

  • Banks kick off RMB interest rate options trading

    Banks kick off RMB interest rate options trading

    A group of 23 banks and 12 securities houses completed 154 renminbi interest rate option (IRO) transactions worth Rmb12.8bn ($1.81bn) on Monday. The new derivatives product is viewed as a solid step for China’s interest rate reform.

  • SRT market struggles with marks as SMEs, corps face crisis

    SRT market struggles with marks as SMEs, corps face crisis

    The synthetic risk transfer market, where specialist hedge funds write protection on up to €100bn of notional risk per year from banks, is grappling with the impact of the coronavirus on SME and corporate credit. The illiquid bilateral transactions barely trade, but have increasingly been financed through the repo market, giving banks and funds a challenge as they fight over where the positions should be marked.

  • CFTC slashes work from home rules but UK tinkers

    CFTC slashes work from home rules but UK tinkers

    The US Commodity Futures Trading Commission gave market participants adapting to working from home some relief late on Tuesday, with sweeping no-action relief on voice recording requirements. The UK’s Financial Conduct Authority hasn’t gone so far, but has offered firms some flexibility.

  • Stress test turns real as virus vol hits fever pitch

    Stress test turns real as virus vol hits fever pitch

    Financial market participants were left wondering this week if what felt to many like a very vivid stress test had become a complete meltdown, as searing volatility puts all players into crisis preparation mode, write Ross Lancaster, Jon Hay, Max Adams and David Rothnie. Strains are appearing in places where they were not expected, such as the US Treasury market. But markets are continuing to function and some traders have enjoyed exceptional volume.

  • Carnage in credit as Crossover plunges further

    Carnage in credit as Crossover plunges further

    The Markit iTraxx Crossover index, a barometer of non-investment grade credit, printed as wide as 575bp on Thursday, as credit markets weakened further, and trading desks were seen refusing to bid bonds and working orders only. Real prices were said to be two or three points below those on screens.

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