Derivs - Credit

Credit portfolio managers and hedge funds are buying protection on senior financials and selling protection on the iTraxx Main to position for a short term correction in the relationship between the two indices.

Albert Dombrowski, Americas head of the special situations group at Goldman Sachs in New York, is retiring from the firm.

Pieter Van Vredenburch, head of U.S. interest rates trading at the Royal Bank of Canada in New York, has left the firm.

Ireland took a big step towards fiscal normality after it announced that it would make a clean exit from its E.U. bailout.

European trade repositories are calling for the European Securities and Markets Authority to set down guidelines on global legal entity identifiers, or LEIs, ahead of trade repository reporting going live in February.

There are three main components to the European Market Infrastructure Regulation: risk management requirements for OTC derivatives that are not centrally cleared; central clearing of certain OTC derivatives, together with a harmonized framework of clearing within Europe; and reporting of all derivatives to trade repositories.

Dealers in the interbank market in mainland China are actively pricing interest rate swaps on the country’s new Loan Prime Rate, with a number of transactions already executed.

The European Central Bank’s decision to cut interest rates to 0.25% momentarily reversed the flow of volatility buyers in Main, according to strategists at BNP Paribas.

Deutsche Bank is recommending receiving sterling 2s4s7s butterflies, either outright or against U.S. dollar butterflies, in order to hedge against a more dovish than expected Bank of England inflation report, due to come out next week.

Fund managers and strategists are looking at trades on financials against industrial names.

NYSE Liffe will be launching 30-year Ultra Long Gilt Futures on the back of customer demand. The contracts will be available Nov. 25.

Regulatory burdens such as authorization for central counterparty clearinghouses are likely to hinder the launch of new products in Europe, noted Trevor Spanner, ceo of LME Clear, speaking at the 29th Annual Futures & Options Expo in Chicago.