Derivs - Equity

Morgan Stanley is advising investors to sell Dec. 2010 variance swaps on the Hang Seng China Enterprise Index since the market is pricing in more volatility than the bank has forecasted.

Goldman Sachs and JPMorgan Chase issued nearly identical structured products linked to the S&P 500 on Tuesday, but the performance caps they applied were different. It could not be determined if it was a split deal for the same customer, a format some structured deals have taken of late.

With volatility on the S&P500 at historic lows, now is a good time to lock in equity gains with zero-cost collars, according to Jim Strugger, a derivatives strategist at equity trading and research firm MKM Partners in Greenwich, Conn.

A group of executives from Argent Funds has formed Raven Rock Capital, a corporate credit relative value shop.

Copenhagen-based Saxo Bank has opened an office in Amsterdam targeting retail investors.

The International Swaps and Derivatives Association is holding a meeting next week to kick off its effort to revise the 2002 Equity Derivatives Definitions.

The European Commission is soliciting alternatives to proposed capital charges for customized trades and has reached out to various industry bodies and dealers for their thoughts.

The New York bankruptcy court judge handling the workout of the Lehman Brothers Holdings estate ruled yesterday that Metavante Corp., a counterparty that owes Lehman roughly USD7 million plus interest on a swap, has to pay up. That’s despite language in the International Swaps and Derivatives Association contract that suggested otherwise.

Asian fund of funds manager Gen2 Partners is set to launch a fund investing in commodity trading advisors and Wesley Hu, founder and partner in Hong Kong, said it will adopt an over-the-counter overlay strategy.

Credit Suisse has teamed up with Macquarie Securities on an equity structure being targeted at retail buyers in Australia.

The Hong Kong Securities and Futures Commission is considering allowing dividend swaps to be sold to retail investors.

JPMorgan Chase & Co. rolled out a big offering of reverse convertible notes today—USD40 million linked to the common stock of General Electric Co. and USD17 million linked to Chesapeake Energy Corp.