Derivs - Credit

A restructuring of Greek debt is likely to trigger a credit event for credit default swaps, according to strategists at Barclays Capital in London.

Mark Northway, the London-based global head of credit capital markets at Landesbank Baden-Württemberg, will leave within the next couple of months as the result of the restructuring of its financial markets division.

London sovereign credit default swaps traders returned from the extended weekend to a tightening market.

Derivatives market participants see problems with how Basel III accounts for the risk posed by central counterparties.

Citigroup Global Markets Asia and asset manager and investment advisory Tribridge Investment Partners have closed a USD32 million Asia ex-Japan focused synthetic structured note linked to an underlying portfolio of credit default swaps and total return swaps.

AllianceBernstein has rolled out the RMB Income Plus Portfolio, a UCITS-compliant bond fund that will invest in renminbi bonds issued outside China and bonds from elsewhere in Asia excluding Japan.

The International Swaps and Derivatives Association’s credit determinations committee today decided a bankruptcy credit event had not occurred with regard to NTC, formerly Angel Lux Common, a telecommunications and data services provider based in Denmark.

The Basel Committee has removed the maturity cap for credit exposures in the revised version of Basel III released today.

The European Securities and Markets Authority has asked for input on what topics in the European Market Infrastructure Regulation to prioritize in creating technical standards.

A new regulatory interpretation of Japanese law, along with what market officials say is a sound risk waterfall in the coming Japan over-the-counter derivatives central counterparty, has eased fears that members would have unlimited liability to the onshore clearinghouse.

The penultimate week of May started with the sovereign credit markets in risk averse mode. For once it wasn’t Greece that damaged sentiment but the two countries regarded as the safest of the “PIIGS” -- Italy and Spain.

The level of cleared interest rate swaps as a percentage of total interest rate swap notional outstanding increased from 21% to 50% between year-end 2007 and the end of 2010, according to an analysis published today by the International Swaps and Derivatives Association.