Derivs - Credit

Counterparties should not have to post margin for non-cleared swaps on the same day of execution, nor should covered swap entities be barred from netting initial and variation margin requirements across asset classes and financial products, say the International Swaps and Derivatives Association and the Securities Industry and Financial Markets Association in a joint comment letter to bank regulators last week.

Mint Partners has hired Ian Claisse, formerly global head of credit trading at Landesbank Baden-Württemberg in London.

Sovereign debt management offices could reduce the spread of sovereign credit risk to banks by changing how they trade and process over-the-counter derivatives, suggests a report released today by the Bank for International Settlements.

Participants in the sovereign credit markets were hoping for a respite from the volatility of recent weeks.

Desmond Li, an executive director in regional multi-asset sales to pension funds and insurance companies at Goldman Sachs in Hong Kong, has left the firm, according to officials familiar with the move.

VTB Capital, the largest investment bank in Russia, has opened a branch in Hong Kong to be headed by Judy Lim, chief executive officer of VTB’s Singapore unit, Bill Mui, former chief operating officer of Cypress Lane Capital in Hong Kong, and Hua Shen, former managing director at Mitsubishi UFJ Securities.

BNP Paribas thinks there is relative value between credit default swaps referencing different European banks based on stress tests of assets.

Lazard Asset Management plans to launch an Undertakings for Collective Investment In Transferable Securities emerging market fund by the third quarter.

Defining naked sovereign credit default swaps will determine how painful the a ban in Europe will be.

VTB Capital, the largest investment bank in Russia, has opened a branch in Hong Kong headed by the Judy Lim, chief executive officer of VTB’s Singapore unit; Bill Mui, former chief operating officer of Cypress Lane Capital in Hong Kong; and Hua Shen, former managing director at Mitsubishi UFJ Securities.

Clearinghouses calculate and manage collateral in different ways and also vary in how they connect to other companies in the clearing cycle.

Spreads on credit default swaps referencing China widened by 25% over the second quarter on fears the country’s economic growth will slow.