Derivs - Credit

Tullett Prebon has extended its land grab in hybrid voice brokerage across trading classes, with a foreign exchange platform launch this week adding to recent manoeuvres in other areas such as rates and credit derivatives.

Dovish actions taken by the Bank of England last week, particularly its sterling corporate bond buying programme, helped send short dated credit and equity implied volatility near to their post-crisis lows, prompting traders to begin to roll out of short volatility trades and size up potential bumps in September.

Spanish engineering firms with exposure in Latin America may not be the most heavily traded segment of the credit markets, but they are certainly proving the most vulnerable.

Sterling bond yields may be sinking but that has rekindled investor demand for UK bond exchange traded funds at the expense of Gilts, according to IHS Markit.

An auction to settle credit default swaps referencing Grupo Isolux Corsán Finance is expected to take place on August 24, the International Swaps and Derivatives Association’s (ISDA’s) EMEA Determinations Committee (DC) said on Wednesday, as it published an initial list of deliverables that only contained one bond.

Grupos Isolux Corsán Finance has triggered a bankruptcy credit event, the International Swaps and Derivatives Association’s EMEA Determinations Committee has ruled.

Tullett Prebon has bought a long term licence to use CME Group's hybrid voice/electronic trading technology, adding to the interdealer broker's other recent hybrid expansion initiatives.

The era of monetary stimulus has become a parade of diminishing returns that cannot continue if health is to return to the global economy.

It was a tale of two interventions this week, as Japan underwhelmed markets with its stimulus plan while the Bank of England delivered more than expected, in moves that also sent the yen and pound reeling in different directions.

The fate of credit default swaps referencing Grupo Isolux Corsán Finance hung in the balance on Thursday, with the International Swaps and Derivatives Association’s EMEA Determinations Committee weighing whether the company would become the third of last August’s five widest trading iTraxx Crossover constituents to trigger a credit event in 12 months.

The Bank of England doesn’t often follow the European Central Bank. During the financial crisis and its aftermath, the Bank was quick to cut interest rates and implement quantitative easing. The ECB was still raising rates in July 2008, and didn’t start QE until 2015.

The International Swaps and Derivatives Association’s EMEA Determinations Committee has delayed until Friday a decision on whether Grupo Isolux Corsán Finance has triggered a bankruptcy credit event.