Derivs - Credit

BNP Paribas strategists are advising investors to sell bonds on marine transport, air transport, chemicals, steel and electronics companies and buy five-year credit-linked notes, referencing names in these sectors.

Société Générale is recommending a play to benefit from a record inverted level on the U.S. dollar/yen cross-currency swap yield curve, by paying the 5y CCS basis, 1y forward for a marked-to-market potential of +15 basis points and a roll-down over one year of +12bp.

The governance of the Euribor-European Banking Federation needs to improve, particularly in the structure of its steering committee, according to the European Securities and Markets Authority and the European Banking Authority.

The strong start to 2013 for sovereign credit has continued into the middle of January.

Makram Fares, the ex- co-head of European equity sales and equity derivatives at Nomura in London, is set to launch his own interdealer broker and advisory firm.

India’s credit default swaps market faces a number of challenges despite revised guidelines on unwinding procedures from the Reserve Bank of India.

Vee Leung Phan, head of fx and interest rates trading for emerging markets at Morgan Stanley in Hong Kong, left the firm a few weeks ago.

Liquidity support from the European Central Bank in addition to progress towards a banking union in the eurozone has opened the opportunity to go long via credit default swaps on specific periphery banks in region, according to the Royal Bank of Scotland.

BlackRock is looking to increase the amount of fx transactions that it settles via Continuous Linked Settlement, Chris Vogel, global head of fixed-income and currency trading for the USD3.67 trillion asset manager, told DI in an exclusive interview.

JPMorgan has launched a multi-asset class trading platform called JPMorgan Markets, bringing pre-trade, trade and post-trade functionality on one platform.

The Arcadia Group’s staff and senior executive pension schemes are considering hiring a new manager to invest in interest rate and inflation swaps during the third quarter this year, as part of a planned shift into liability-driven investments.

UBS in Tokyo has decided to halt trading of fixed income derivatives with U.S. counterparties and clients. A number of firms have taken similar steps to limit the chance of running afoul of the new Dodd-Frank rules, according to one market official.