Derivs - Credit

Europe’s leaders fail to deliver on the debt crisis–yet again.

Igor Arsenin, director of fixed income research and the head of Latin America fixed income strategy at Credit Suisse in New York, resigned last week and is on garden leave.

Asian buysiders have been buying credit default swaps on Germany for the past week as a cheap hedge against turmoil in Europe.

Peter Duenas-Brckovich is co-head of global flow credit trading at Nomura in London. He works in the global credit products group, where the flow business covers areas such as high grade, high yield, loans, credit default swaps, emerging market credit, distressed and securitized products. He spoke to Managing Editor Rob McGlinchey on topics including regulation, transparency and the state of the CDS market post-Greece credit event.

Commerzbank is looking to expand its emerging markets interest rates derivatives business in London and Asia by adding upto six people over the next year to its current 12 person team.

Selling five-year credit default swaps on Germany brings greater yield than buying cash bonds because the CDS spread is skewed wider on European sovereign risk, according to a report by Munich-based Assenagon Capital Management.

Single-name and index credit default swaps could end up with different clearing regimes and higher overall margin requirements, according to panelists at the Futures Industry Association 2012 Expo in New York.

The political turmoil in Greece continued to create volatility in the credit markets.

Asset managers are buying credit default swaps on Russia because of the impact lower oil prices could have on the country’s finances.

James Bannister, London head of flow credit sales to asset managers and insurance companies, has left JP Morgan.

The proposed ban on naked European sovereign credit default swap trading by the European Securities and Markets Authority has enough exemptions that it will not impact CDS trading, according to a report by Munich-based Assenagon Credit Management.

Fund managers and commodity pool operators have received additional assurance from U.S. regulators regarding a ‘look-through’ provision that may have precluded them from entering into over-the-counter fx transactions for certain clients post Dodd-Frank implementation.