Derivs - Credit

Retail investors and private institutions are trading credit linked notes on baskets of Scandinavian names such as Stena, Stora, UPM, Volvo and Metsa Board.

Investors who think the European Central Bank will cut rates at a policy meeting Thursday should go long risk Europe, short risk U.S. via receivers to take advantage of CDX IG volatility, which is trading expensive relative to iTraxx Main.

Derivative.com, the Swiss multi-dealer structured product click and trade platform, is working on offering bonus and outperformance certificates to users, according to Eric Wasescha, ceo of Derivative Partners, which operates the platform.

Newedge will be joining forces with Global Markets Exchange Group in order to provide execution and clearing services to buy and sellside clients globally.

Counterparties may be disincentivized from choosing to segregate their collateral following final rules from the U.S. Commodity Futures Trading Commission addressing the manner in which swap dealers hold collateral for uncleared swaps.

Société Générale is pitching 15s17s steepeners on the Brazilian swap rate as the firm expects fiscal concerns in the country to re-emerge and apply upward pressure on long-end yields, despite recent flattening in the Brazilian yield curve.

Liontrust Asset Management is clearing 100% of all eligible credit default swap trades through ICE Clear Europe, according to Neale Soffe, head of operations at the fund in London.

Real money funds are buying sub protection on Deutsche Bank and selling sub protection on HSBC after the German bank reported third quarter net income of EUR41 million, down 95% year-on-year last week.

Credit default swaps on Assicurazioni Generali, the Italian insurance giant, ballooned nearly 100 basis points after a decision by the International Swaps and Derivatives Association that new, contingent-maturity tier-two subordinated bonds are deliverable on CDS contracts referencing old non-contingent bonds.

Credit spreads continued to grind tighter as the favorable monetary policy outlook in the developed world sets the scene for a solid end to the year.

Credit Suisse is recommending investors receive fixed rate in 1y1y Canadian Dealer Offered Rate swaps to play a bullish bias on rates in the country.

Rabobank has been fined by regulatory authorities for more than USD1 billion in connection with investigations linked to the firm’s historical Libor and Euribor submission processes.