Derivs - Credit

The stability of Asia sovereign spreads and sovereign credit default swap spreads throughout the European debt crisis has shown Asian countries to be less subject to the contagion risk than other countries, according to a working paper released this month by the International Monetary Fund.

Buyers of protection are likely to wait for a failure-to-pay credit event to be called on Allied Irish Banks before triggering credit default swaps.

The board of directors of corporates will become responsible for risk management oversight, which typically covers derivative use, as opposed to the audit committee, under a Monetary Authority of Singapore proposal in a new consultation paper.

Before The Dodd-Frank Wall Street Reform and Consumer Protection Act, loan credit default swaps and loan total return swaps were outside the ambit of each of the Commodity Exchange Act, the Securities Act of 1933 and the Securities Exchange Act of 1934.

Credit Suisse has launched a structured product linked to eight microfinance local currency loans, the first of its kind according to structurers in Europe and Asia.

European credit markets went into the weekend in a fragile state.

Eurex Clearing is about to offer segregated accounts for clients of clearinghouse members for over-the-counter derivatives, the first central counterparty to do so.

LONDON - Following a discussion of the proposed tie-up between NYSE Euronext and Deutsche Börse at IDX 2011 this week, Nicolas Bertrand, head of equity and derivatives markets at the London Stock Exchange, made the fairly innocuous comment that the size of exchanges should be considered as a possible roadblock to competition.

Phillip Capital Management is looking to launch two new funds in Singapore, the Phillip S-REIT Fund and the Phillip RMB Bond Fund, according to documents filed with the Monetary Authority of Singapore.

Mandatory clearing applied indiscriminately across markets will increase systemic risk, according to Alexander Justham, director of markets at the U.K. Financial Services Authority.

CMA has launched an hourly pricing service for single-name, index CDS and index tranches.

Regulation for single-name and index credit default swaps from the U.S. Securities and Exchange Commission and the U.S. Commodity Futures Trading Commission should be the same, or as near the same as possible, according to a comment letter from MarketAxess, a New York-based broker-dealer.