Derivs - Credit

The fervour of expectation in the run up to this week’s US Federal Reserve and Bank of Japan meetings ended in widespread pain for foreign exchange, equity and derivative market participants.

BNP Paribas’s head of emerging market credit sales has left the bank.

China Construction Bank plans to begin trading derivatives and bonds in Singapore, having teamed up with Singapore Exchange to promote the island state’s capital markets to Chinese companies.

The International Swaps and Derivatives Association's EMEA Determinations Committee has ruled that Norske Skog has triggered a restructuring credit event.

Credit markets reacted positively after Brazil’s congress voted in favour of impeaching president Dilma Rousseff on Sunday.

A vote by the United Kingdom to leave the European Union would entail a host of negative consequences for the derivatives market, according to Allen & Overy lawyers. The concerns include a deterioration of counterparty creditworthiness, changes in mark-to-market exposure and a decline in the value of UK linked collateral.

Large flows coming into US credit have increased the attractiveness of CDX index options prices versus iTraxx, said market participants this week.

The International Swaps and Derivatives Association's EMEA Determinations Committee has agreed to determine whether Norske Skog has triggered a restructuring credit event.

The US Senate Agriculture Committee was expected to review legislation reauthorising the Commodity Futures Trading Commission (CFTC) on Thursday amid debate over the benefits of additional funding for financial regulators.

The International Swaps and Derivatives Association (ISDA) used its 31st annual general meeting in Tokyo this week to publish the first in a series of documents to help market participants comply with margin requirements for non-cleared derivatives. It also joined other industry bodies in a clarion call for global regulators to drop dual-sided derivatives trade reporting in favour of an entity-based approach.

When it comes to Italian banks, pessimists are not in short supply. Indeed, to be bullish on this sector could be considered contrarian, or even foolhardy, given its parlous state. Asset quality is the overriding problem — Italy’s banks have €360bn of non-performing loans on their balance sheets, about a third of the eurozone’s total.

The International Swaps and Derivatives Association and other industry bodies have called on global regulators to drop dual-sided derivatives trade reporting and instead accept an entity-based approach.