Derivs - Credit

Brett Golledge, a former head of credit flow trading at UBS in London, has joined Arrowgrass Capital Partners.

Credit default swaps on Telekom Austria have widened by 17% over the last month, according to Fitch Solutions.

Structurers have seen an increase in credit-linked notes referencing Brazilian single names since the summer, when a 6% tax on fixed-income foreign investments was lifted, improving liquidity in the local market. One structurer in London said he is seeing weekly requests for CLNs on Brazilian names as opposed to no requests at the start of the year.

China was once again shaping spread direction in western markets as mixed messages emanated from the world’s second biggest economy.

Trade compression, a normalization of premiums for credit default swaps and lower levels of speculation and proprietary trading have led to a declining trend in gross market value of credit default swaps since 2008, according to Anshuman Jaswal, a senior analyst at Celent in New York.

Bullish real money players and hedge funds are buying receivers on iTraxx Main, allowing them to cap losses in case of widening after the Main hit its tightest level this year on Tuesday.

Dodd-Frank implementation proposals are preventing U.S. firms from participating in the credit-linked note revival.

FTSE Group and Bank of China (Hong Kong) have launched the FTSE-BOCHK Offshore RMB Bond Index Series. The index, which has been launched on the back of increased trading in RMB, will be used as a benchmark for RMB-linked fixed income products, including exchange-traded funds.

JPMorgan has hired Dick Söderberg, an ex-interest rates trader at Barclays in London, as a fixed income trader, also based in London.

Lloyds Bank has tapped Oliver Carter, a former senior investment grade corporate credit trader at Mizuho in London, as head of investment grade corporate trading, also in London, in a new role.

A potential mismatch could arise if Japan’s Financial Services Agency looks at using trust accounts for the segregation of client collateral when it implements the Basel Committee on Banking Supervision and the International Organization of Securities Commissions’ margin requirements for non-centrally cleared derivatives, according to market officials.

Barclays is recommending a zero-cost positive carry trade whereby investors sell euro 3m*3y versus U.S. dollar 3m*3y.