Derivs - Credit

The International Swaps and Derivatives Association has accepted a request from investors to rule on whether Portugal’s Novo Banco has triggered a government intervention credit event.

One of ICAP’s independent non-executive directors is set to resign at the end of the year.

Spain's inability to reach a decisive result in its general election sent European credit default swap markets wider on Monday, although dealer desks said trading was very thin.

Bank market makers in credit index options got hammered twice in the past week, as a spike in spreads caught them long volatility after an unprecedented month-long market lull.

Good news from the US Federal Reserve — in the form of a more dovish rate announcement than some market participants had expected — brought a sanguine close to a turbulent week for credit derivatives and boosted equity markets, but only added to the pressure on emerging market countries and their currencies.

The auction to settle credit default swaps referencing Abengoa will take place in January, after the Spanish renewable energy company last week triggered both failure to pay and bankruptcy credit events.

Faced by a dwindling market for single name credit default swaps and the prospect that dealers could retreat from the product due to higher margins on non-cleared derivatives, a group on the buy-side has taken clearing into their own hands, in what one seasoned observer said is an attempt to “head off” an uncertain regulatory foe.

High yield credit and stock markets were immediate beneficiaries of the US Federal Reserve's decision on Wednesday to raise interest rates for the first time since 2006.

A group of 24 investment management firms has pledged to begin voluntarily clearing their single name credit default swap trades through central counterparties (CCPs), hoping this will encourage other buyside firms to follow suit and help revitalise the credit derivatives market.

Markets divisions at investment banks have ruled the roost for years now, but their world is being turned upside down. Soon, nothing will be what it seems anymore.

Abengoa has triggered a failure to pay credit event, ISDA's Determinations Committee has ruled, only days after the company narrowly avoided a bankruptcy trigger for most credit default swaps.

Abengoa will come under further scrutiny from ISDA’s Determinations Committee on Friday, only days after the Spanish renewable energy company narrowly avoided triggering a bankruptcy credit event for most credit default swaps.