Derivs - Credit

Assénagon Asset Management, in Munich, is prepping four new credit funds under Jochen Felsenheimer and Wolfgang Klopfer, the newly appointed co-heads of credit.

Deutsche Bank is recommending that investors make carry spread trades on Japanese mobile phone company SoftBank.

Missouri insurance regulators are waiting for federal government proposals on policing credit default swaps before formally nixing their own plans.

The recovery value for credit default swaps referencing manufacturing company British Vita first-lien loans settled this afternoon slightly lower than expected at 15.5.%, despite the loans trading in the context of 19.25-23.583.

Mikhail Foux, head of U.S. credit and derivatives strategy at Citigroup in New York, is recommending a relative value strategy that involves selling credit default swaps on Time Warner Cable and buying CDS on parent company Time Warner Inc.

Credit default swaps on Bank of America blew out to a new wide of 217.5 basis points this morning as the bank’s stock continued its sharp descent and concern spread that the firm may need to be nationalized.

Aladdin Capital Holdings recently hired John Carroll as managing director and global head of securitized product trading and David Attisani as managing director of broker dealer sales and marketing.

European insurance companies and pension funds are increasingly scoping negative basis trades as they look to eek out returns in distressed credit.

John Paulson sees plenty of opportunities in the coming year. He is bullish on distressed mortgages, distressed debt, debt restructurings, bankruptcies, strategic mergers and event arbitrage.

Three subsidiaries of LyondellBasell Industries went through post credit event settlement auctions today, with recoveries ranging from 7.125% to 27.5% and the largest movement between the inside market midpoint and the final price ever recorded.

Investors are beginning to trade sovereign credit default swaps against CDS on banks because the trend that usually sees sovereigns trade tighter than financials is reversing.

Glen Taksler, a principal in credit derivatives strategy at Bank of America in New York, has left the bank in the wake of its merger with Merrill Lynch