Derivs - Credit

Regulators in the U.S. and Europe have reached out to officials on structured credit desks to better understand the effect the structured bid have on corporate financing.

Structured credit teams are reportedly generating healthy revenues by taking the place of prime brokers as liquidity providers to Asian-based hedge funds and other such investors.

The credit correlation markets rallied last week helping to also pick up bespoke collateralized debt obligation valuations.

Markit Group is adding a new penultimate sub-index to the beaten up ABX to increase liquidity in the asset-backed market proxy.

European commercial banks are approaching asset managers and broker dealers to enter total return swaps to free up capital.

Markit Group consulted with participants in the municipal bond market before launching the MCDX index, the first time the index provider has directly reached out to large investors in the cash market before firing up a derivatives index.

Calyon is advising investors buy protection if the technical rally in the Asian credit default swap market persists.

Asia-Pacific sellsiders are shifting to look for senior derivatives players with broader-based skills rather than specific expertise.

Dealers and the International Swaps and Derivatives Association are working on ways to settle credit-default swaps triggered by a restructuring credit event and are considering grouping together contracts with similar maturities and running a separate auction for each of these groups of contracts.

A director in Deutsche Bank’s collateralized debt obligation group has joined hedge fund firm BlueMountain Capital Markets.

Permanent credit-default swaps on prime U.K. and Dutch residential mortgage-backed securities have tightened dramatically over the past six weeks, according to industry analysts.

The cost of credit-default swaps on U.K. bank HBOS was volatile last week, livening up the CDS market against a relatively quiet backdrop.