Derivs - Credit

Lyxor Asset Management has launched a credit strategy fund that accesses event-driven and credit-oriented strategies across multiple asset classes as set out by Canyon Capital Advisors.

Derivative contracts with Cypriot counterparties may not pay out because of recent capital controls.

The International Swaps and Derivatives Association unveiled the members of the five regional Determinations Committees that make binding decisions regarding credit events, succession events and auctions to determine the final price for CDS settlement globally.

Credit Suisse recently sold a synthetic securitization of Swiss small-to-medium enterprise loans, known as Clock Finance 2013-1 BV.

The International Swaps and Derivatives Association Credit Determinations Committee has decided a credit event occurred at Dex One and Supermedia.

Assenagon Asset Management’s credit selection fund has launched with more than EUR100 million (USD128.3 million) raised.

Kevin Holmes, head of U.S. dollar interest rate options trading at Bank of America Merrill Lynch in New York, has left the firm.

Nicholas Brophy, head of U.S. dollar interest rates trading at Citigroup in New York, has left the firm.

The decision by the U.K. government in Chancellor George Osborne’s budget last week to decide against smoothing the discount curve to value U.K. pension fund liabilities presents the case to buy GBP 10y gamma versus 30y, according to Société Générale.

Pension funds do not have the cash needed to provide margins to central counterparties, and therefore the temporary exemption from the clearing obligation under the European Market Infrastructure Regulation is warranted, according to Steven Maijoor, chair of the European Securities and Markets Authority.

A bailout for Cyprus was agreed before the deadline, as expected. However, the relief rally that often follows such announcements didn’t materialize, and the EU only had itself to blame.

Chinese derivative rules allowing domestic securities firms to trade over-the counter derivatives onshore have created questions over which regulator takes precedence when those firms trade with banks.