Derivs - Credit

Nomura has hired Tom Haskins as managing director and head of fx sales for the Americas, and Eric Miller as managing director and head of interest rates sales for the Americas.

Private banks globally have been tapping structures that allow them to benefit from the strengthening of the U.S. dollar against the yen, by investing in so-called Bull Disappearing DOCU’s on USD/JPY.

Investors should look to purchase credit default swaps on specific subordinated names and sell CDS on senior names to position for a correction in the sectors following proposals released by the International Swaps and Derivatives Association on Friday.

The international reach of Dodd-Frank may result in Brazilian businesses choosing to hedge with a non-U.S. firm to avoid any regulatory burdens involved in complying with U.S. regulation.

The continued increase in swaption volatility on the Japanese government bond yield has created an opportunity for investors to enter a straddle play, according to strategists at JPMorgan.

Strategists at Société Générale have created an algorithmic framework to identify pair trade opportunities for single name credit default swaps.

The International Swaps and Derivatives Association is proposing to amend its credit derivatives definitions by adding a credit event for financial credit default swaps that would trigger when a government authority initiates a bail-in action. To view the proposal, click through to the story.

Ireland’s credit default swap spreads hit 138 basis points on May 17, their tightest level since for more than three years—an apparent endorsement by the market of the government’s economic policies.

An amendment that would have reviewed a rule in the U.S. that requires investments firms to request a quote to buy or sell derivatives from three dealers—an automatic increase from two dealers—has been rejected by the U.S. Commodity Futures Trading Commission.

Investors should sell protection on the iTraxx Asia ex-Japan to position for tightening in credit index spreads in Asia after a rally in Chinese equity markets and U.S. dollar gains against Asian currencies. Strategists at Société Générale are recommending investors buy 5y or 10y BBB Chinese bonds and sell Asian iTraxx protection at 102 basis points to increase the beta on investors’ credit portfolios.

The planned financial transaction tax could lead to direct costs as high as EUR40 million if those corporates are defined as financial institutions under the terms of the tax, according the European Association of Corporate Treasurers.

Mark Valentine, Europe, Middle East and Africa head of the packaging group within Citigroup’s multi-asset structuring business in London, has left the firm after less than a year.