Derivs - Credit

Efforts to combat manipulative short selling will not be effective without regulating the derivatives market, in which credit default swaps are “a powerful device for bear raids,” according to attorneys at Wachtell, Lipton, Rosen & Katz.

The Tokyo Stock Exchange can see a future where clearing platform for over-the-counter derivatives could become the central clearinghouse for Asia.

A feasibility study is being conducted into whether it is achievable to make the buyside part of commitments to federal regulators on credit default swap clearing.

The International Swaps and Derivatives Association has circulated a draft term sheet outlining auction settlement protocols to be followed in the wake of restructuring credit events.

Broker-dealer BTIG has added four credit professionals to its global fixed income group in New York.

Credit default swap traders say investor fears on names that have exposure to countries where swine flu is present is waning.

Corporate credit default swaps in Asia are expected to trade tighter than their respective sovereign counterparts, credit analysts at Morgan Stanley predict.

New York investment bank Westwood Capital has added co-heads of fixed income advisory and trading, who are looking to expand the business with new hires and capabilities.

Independent research firm CreditSights has hired Atish Kakodkar as a senior strategist in credit derivatives in New York. He starts today, replacing Brian Yelvington, a senior macro strategist, whose departure date could not be determined.

The auction to cash settle credit derivatives referencing General Motors has yielded a result of 12.5% for credit default swaps, and 97.5% for loan-only CDS.

Amherst Holdings’ move to arrange for bondholders to be repaid—preventing its clients from paying out hefty sums on credit default swap protection—is seen by some lawyers as within the rules of the game in the world of CDS.

Hedge funds and bank prop desks in London were buying five-year credit default swaps on Swedish-based home appliances provider Electrolux Friday morning, marking a stark contrast to activity earlier in the week when they were selling protection on the name.