Derivs - Credit

Michael Jinn, co-head of European credit structuring at UBS in London, has left the firm.

London-based hedge fund Chenavari Investment Managers plans to put to work EUR50-100 million (USD67-134 million) in a structured finance and corporate credit strategy in either its own fund or as part of a multi-strategy fund this quarter.

A thicker shroud than usual surrounds the topic of bonuses this year as the banking industry waits to see how the European regulators’ ire will play out.

Société Générale recommends investors buy protection on the iTraxx Asia Ex-Japan index if spreads tighten back to 102 basis points from 107bp last week, in expectation spreads will widen much more as Asia reacts to European headlines.

Proposals by the European Commission to write down or convert bank debt to recapitalize failing banks could make the debt not deliverable into current credit default swap contracts or cause buyers of protection to miss out on having events declared credit events.

The International Swaps and Derivatives Association’s Japan credit central counterparty working group committee has urged Japan’s Financial Services Agency that clearing members’ liability to a CCP be capped at a multiple of the guarantee fund, according to a committee draft proposal.

Laurent Henrio has joined Société Générale in London in a new role as a credit exotics trader.

France’s Autorité des Marchés Financiers opposes a blanket ban on naked credit default swaps, in contrast with the position taken by French Member of Parliament Pascal Canfin.

Barclays Capital is recommending investors pair selling protection on certain core European countries with buying protection on some corresponding corporate credits as corporate CDS spreads may have tightened excessively compared to their sovereigns.

Standard Chartered Bank has promoted Sundeep Bhandari to global head of audit for wholesale banking from his role as head of global markets for Hong Kong and Northeast Asia according to an official at the firm.

A decision by the First Department of the Appellate Division of New York County yesterday will help protect credit protection buyers whose credit event claims are dismissed by protection sellers on technical grounds, according to lawyers in New York.

BNP Paribas has hired Joe Abbatiello as director in sales across equity derivatives and cash for event-driven clients based in New York.