Derivs - Credit

Analysts at Dresdner Kleinwort are tipping the iTraxx Europe Crossover index to continue to outperform the main iTraxx Europe.

Traders have shown signs of the jitters trading Thailand sovereign credit default swaps as political instability threatens the economy.

Citigroup’s former global head of fund of funds sales, Marc Fisher, is expected to land at London-based shop FRM this month.

Sound results posted by Italian bank Monte dei Paschi last Friday did little to shake up credit default swap trading on the name in Europe at the start of the week.

The increased use of credit default swaps and loan-only credit default swaps could end up rewriting the way bankruptcy proceedings play out.

The dealer group working on a revised loan-only credit default swap contract that removes the cancelibility option has handed it over to the International Swaps and Derivatives Association for a road test.

The Bank of Thailand has freed up local commercial banks and foreign banks with an on-shore presence to use derivatives more often across the asset spectrum via new regulations which kicked in earlier this month.

Bond issuance triggered trading activity on iTraxx Europe this week as market players stocked up on investment-grade bonds and then hedged credit via the index.

With credit spreads widening due to the increase in the cost of borrowing, players using leverage to juice returns on basis portfolios are looking to cash out of those positions, according to the head of credit at a bulge bracket firm.

The 20 biggest improvers on five-year Asian credit default swap spreads in the last week are all Japanese names, according to Markit data.

A working group of the International Swap and Derivatives Association is slated for a Sept. 4 call to discuss an advanced draft of standardized documentation for a type of contingent credit-default swap known as derivative termination obligation.

Analysts at Dresdner Kleinwort are tipping industrials to be the next sector to be hit by credit spread widening.