Derivs - Credit

High-grade asset-backed collateralized debt obligations are starting to hit their first events-of-default for missing interest payments, triggering a spate of credit-default swap payments from monolines.

Fitch's revised rating criteria for corporate collateralized debt obligations will include so-called peak default rates rather than long-term historical averages.

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

Stephen Cheng has left his slot as managing director and head of Asia credit trading at UBS in Hong Kong.

A group of dealers working to hard wire the cash settlement auction into derivative contracts will present their initial findings to the New York Federal Reserve Bank by the end of May.

Markit Group and a group of dealers are set to start trading an index referencing credit-default swaps on 50 municipal bonds May 6.

With the threat of a recession in the U.S. continuing, credit strategists at Morgan Stanley believe it would unwise to go long mezzanine collateralized debt obligation risk.

Calyon has hired fx and rates sales specialist Arnold Kan as deputy head of fixed income markets for Asia ex-Japan, a new role for the firm.

A group of credit derivative product companies is considering which trade group is best equipped to offer formal representation of the growing industry.

Dealers and the International Swaps and Derivatives Association are working on how to deal with a restructuring credit event as part of a broader project to hard-wire cash settlement into ISDA documents.

Trading volume in the ABX, the synthetic asset-backed securities index, is down 70% and in some cases 90% as cash bonds have been trading so cheaply and government intervention seems a sure thing.

Two senior credit bosses have left Merrill Lynch in Hong Kong, sparking talk that more may follow.