Derivs - People and Markets
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Citigroup is recommending arbitragers short unsecured risk by buying credit default swaps and go long secured risk by selling loan only credit default swaps, while the cash loan vs LCDS basis is flat to positive.
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Wilmington Trust Investment Management is getting diversification for clients in equity portfolios and juicing their returns via an over-the-counter swap.
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Société Générale has hired Thomas Jacquot as a v.p. in Latin American equity derivative sales in New York.
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Roland Ho, a former managing director in the mortgage-backed securities group and senior portfolio manager at TCW, is setting up his own structured credit shop.
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Nomura has shuttered its Asian proprietary team specializing in high-yield distressed debt/special situations.
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The Securities Investors Association of Singapore is in discussions with banks and local regulators to establish a risk rating for structured products.
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BNP Paribas is recommending writing covered calls on shares to pocket rich premiums given record high implied volatility.
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Barclays Capital is pitching EUR/CHF and USD/CHF call options amid high volatility in the U.S. dollar and euro and ultra low correlation between the Swiss franc and those currencies.
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As discussions about how to overhaul the credit default swap market progress, industry officials are thought to be considering two fixed coupons for non-distressed single names: 100 basis points and 500 bps.
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Industry participants working on a clearing system for credit default swaps are considering doing away with ‘Modified Restructuring’ as a credit event trigger in North American single-name CDS.
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Barclays Bank is disputing claims made by Black Diamond Capital Management in its lawsuit over the messy early termination of a total return swap program the hedge fund had with the bank.
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Rabobank has filed suit against a hybrid collateralized debt obligation called Brookville CDO I, charging that the manner in which it has begun liquidating assets will hamper the bank’s ability to get repaid on a secured loan.