Derivs - Credit

Barclays is backing a high carry strategy that also benefits in a sudden risk-averse environment by buying a 1y*5y receiver on the euro rate curve, that is partially funded with a 1y single-look 5y-30y CMS curve cap.

Volatility overlay strategies are likely to increase this year as investors look to strategies providing downside protection and income generation in the current low yield environment, Nancy Davis, director of derivatives at AllianceBernstein in New York, told DI.

Japanese investment firms have either already registered as major swap participants, or are in the midst of preparing to register with the U.S. Commodity Futures Trading Commission as they near the USD8 billion swap position threshold set by the regulator.

Negative catalysts have been few and far between in recent months, but one arrived with a vengeance this week in the form of an inconclusive Italian election.

Staffers working in derivatives units at European banks in the U.S. and Asia Pacific would be hit hard should restrictions surrounding bonus payouts from the European Union go into force.

Munich-based Assenagon Asset Management, which manages assets of more than EUR10 billion, is set to launch a credit selection fund that invests in corporate bonds and default swaps.

Singapore began its over-the-counter derivatives reform program in July 2011 when the Monetary Authority of Singapore, the central bank and financial services regulator, announced it would meet the objectives set by the G-20 in Pittsburgh in Sept. 2009 as well as the recommendations of the Financial Stability Board set out in its report to the G-20 Finance Ministers and Central Bank Governors in Oct. 2010. Although not a member of the G-20, Singapore is a member of the FSB.

LCH.Clearnet has tapped David Weisbrod for a newly-created role as ceo of its U.S. subsidiary, based in New York.

The Hogg Tendering Advisory Committee for the London interbank offered rate has launched the tendering process to find a new Libor administrator.

The Japan Securities Clearing Corp. started voluntary clearing of euro and yen-denominated TIBOR over-the-counter interest rate swaps on Monday.

Tradeweb Markets has developed its iTraxx credit default swap index platform in Europe to enable both buyside and sellside clients to access the same bids and offers from dealers.

As the basket into which trillions of dollars worth of eggs, in the form of OTC derivatives, must eventually be crammed, central clearing counterparties have the potential to become the world's biggest too-big-too-fail institutions.