Derivs - People and Markets

CQS will launch the CQS Credit Long Short Fund in April, with a starting size of USD100 million.

Barclays Capital is launching its second principal-protected structured note linked to the performance of Pacific Investment Management Co.’s Total Return Fund. The first PIMCO note closed in February.

IDX Capital, an electronic credit derivatives interdealer broker, is looking to hire two managing directors for its investment-grade credit default swap desk and one associate for high yield CDS.

The 6-9% tranche of the iTraxx main index in Europe started trading upfront last week.

FX and equity derivatives broker Newedge has relocated a pair of managing directors in Asia-Pacific as part of its expansion in the region.

Morgan Stanley is recommending credit investors short the 25-35% layer of the CDX High Yield index, while going long the 15-25% tranche.

Investment research firm Morningstar is developing an evaluation system for structured products, initially targeting investors in Australia.

Exchange group NASDAQ OMX is developing a reporting system for prices on structured products in the market and the performance of their underlying indices.

The American Civics Exchange has launched over-the-counter options allowing investors to offset political risk and/or take a view on hot-button political issues.

Fearing it will be years before equity markets produce decent returns again, investors are turning to algorithmic trading strategies wrapped in structured products.

JPMorgan is advising clients short the CDX North America Investment Grade series 11 to roll into series 12 by buying protection on the IG.12 and selling IG.11 protection. That’s because the on-the-run series is trading 39.25 basis points tighter than its predecessor since the roll Friday.

Banks have been enquiring about licensing the FTSE EPRA/NAREIT global real estate indices for over-the-counter options and swaps.