Derivs - Credit

Asian collateralized debt obligation investors are looking at ways to escape exposure to mark-to-market risk in the wake of increasing volatility on credit spreads.

Morgan Stanley has recruited Ben Falloon to boost credit and interest rates structured product sales throughout the Asia ex-Japan region.

The auto sector has been seeing some credit default swaps flows this week, with five-year spreads on German carmaker BMW moving out over the last three days by four basis points to trade at around 67 bps.

Investors looking for tailor-made bets in corporate credit are starting to wager on timing defaults across the homebuilder sector.

Dealers are pushing the idea of trading swaptions on the loan-only LCDX index to reduce the volatility investors face when they use indices as a macro hedge.

BNP Paribas Asset Management is close to printing a new synthetic collateralized debt obligation.

Axa Investment Managers is preparing a follow-up to its Credit Outperformance Note, which launched in May 2007.

Russian bankers based overseas are heading home, tempted by cash bonuses and a boom in local derivatives markets.

Credit Derivatives Research has launched a counterparty risk index that it hopes will complement the clearinghouse plan hatched by dealers.

The structured credit desk of hedge fund Old Lane will be folded into the Citigroup proprietary desk as part of a larger wind down of the hedge fund and redemption for outside investors.

Trading on the iTraxx Europe has significantly slowed this week.

The International Swaps and Derivatives Association has formed a working group to try to reduce the number of derivative trades outstanding.