Derivs - Credit

The proposed financial transaction tax could fundamentally restructure European capital markets from a principal-based model to an agency one, according Simon Gleeson, a partner at Clifford Chance in London. Under current proposals, 11 European Union member states will implement a 0.1% tax on the exchange of shares and bonds, and 0.01% on derivative contracts, effective Jan. 1, 2014.

Real money investors are becoming more active in the credit default swap market, according to Peter Duenas-Brckovich, global head of flow credit trading at Nomura in London. They are adopting a two-pronged approach to risk management through strategic risk positions in the primary market and managing tactical risk using iTraxx indices and single name CDS.

How complex is too complex? The market was left wondering just that after last week’s additional tier one trade from BBVA, which ticked every regulatory box imaginable. It might have suited the bank, but it may also have made it tougher for others.

There’s been a spurt of departures and arrivals in senior interest rate bankers as fixed-income markets are tipped to be a trading hot spot.

The dislocation between credit spreads and economic fundamentals continued thanks to the robust support provided by the world’s major central banks.

David Korpi, director in U.S. dollar swaps trading at Deutsche Bank in New York, has left the firm.

The International Swaps and Derivatives Association credit default swap definitions need overhauling to tackle problems with subordinated debt and bail-ins, which have heightened following the credit event of SNS Reaal.

Shravan Sahdev, ex-managing director and head of U.S. dollar interest rate derivatives trading at the Royal Bank of Scotland in Stamford, Conn., is joining Citadel as a portfolio manager, in New York.

Investors are scoping trading on S19 tranches of iTraxx Main that opened on April 3.

Haroon Sana, global head of interest rates sales at Deutsche Bank in London, is leaving the firm.

Shravan Sahdev, managing director and head of U.S. dollar interest rate derivatives trading at the Royal Bank of Scotland in Stamford, Conn., has left the firm.

UBS reported net profit for Q1 of 2013 of CHF988 million compared to a net loss of CHF1.9 billion in Q4 of 2012, driven by an increase in revenues from the firm’s investor clients services unit of its investment bank, and from wealth management, among other areas.