Derivs - Credit

Robert Pickel, the former head of the International Swaps and Derivatives Association (Isda), has joined interdealer broker Tradition as non-executive director to the board of TraditionSEF, the swap execution facility it operates in the US.

The strong dollar is giving banks rising counterparty exposure to export-heavy European companies that they need to hedge in the credit default swap market, pushing spreads for those firms wider, writes Dan Alderson.

The credit risk European corporates pose is plunging. The Itraxx Europe five year spread is at its lowest level since the end of 2007 and volatility is dropping with it since the announcement of European QE. Meanwhile, investors seem unconcerned about problems in Greece and Ukraine.

Société Générale Prime Services — formerly Newedge — will clear credit derivative transactions through ICE Clear Credit and ICE Clear Europe following its regulatory approval.

This week has seen a return of real money funds buying payer credit options, after resurfacing Greece default concerns prompted another round of hedging.

GlobalCapital is delighted to announce the nominees for its 2015 US Derivatives Awards. Nominations are based upon the cross-market poll conducted in recent weeks. Winners will be announced at a gala dinner in New York on May 28.

The overall credit default swap and interest rate derivative notionals reported to swap data repositories last week decreased again by a further 35% and 25% respectively compared to the same week last year, according to data from the International Swaps and Derivatives Association.

BNP Paribas has hired an experienced high yield credit and CDS trader for its London operations.

The macro picture has dominated the credit markets in recent months, but low interest rates mean conditions are ripe for M&A activity and single name stories.

BNP Paribas has made an experienced hire to its foreign exchange trading business in London.

Innovation in structured products is essential to customise clients’ needs in dynamic market environments, but issuers must weigh risks and education with additional product complexity, according to panellists at the Structured Products Americas-2015 conference in New York.

The overall credit default swap and interest rate derivative notionals reported to swap data repositories last week decreased by 22% and 30% respectively compared to the same week last year, according to data from the International Swaps and Derivatives Association.