Derivs - People and Markets

Banks have been passing up the chance to play white knight in the mini-bond debacle for fear defaulting underlying credit will damage retail banking operations in Asia.

A number of firms stepped up to assume the role of counterparty and/or guarantor on flow credit trades and collateralized debt obligations written by Lehman Brothers.

Raising the quality of data for modeling the performance of reference assets is key to the industry’s future, according to attendees at the 14th Annual Information Management Network ABS East conference.

Credit Suisse has hired a team of senior Lehman Brothers sales staffers who are expected to start in the New Year.

Ex-Lehman Brothers staffers, acquired by Nomura Holdings, could be ready to start within the month, according to a Hong Kong-based managing director of sales at the bankrupt firm.

Standardized natural catastrophe swap documents are drawing closer, a development expected to boost liquidity by attracting new investors, who to date have been hesitant about how the perils are defined and priced.

Credit Suisse’s head of European equity derivative trading Yan Assoun’s future with the bank looks uncertain as it looks to cut staff amid ongoing layoffs in the industry.

Calyon has hired Duke Choi to head up the French bank’s fixed income markets for Korea.

News that Indonesia’s central bank and capital markets watchdog, Bapepam, will begin to monitor the inflow of offshore structured products has been welcomed by industry participants, who claim light regulation has left them blind to what has been sold inside the country.

Investors in synthetic collateralized debt obligations that referenced Lehman Brothers as an obligor are at risk of suffering losses after a settlement agreement last week on outstanding credit default swap agreements for Lehman returned sub-par results.

Wahid Chaudhry, the former head of index exotics trading at Lehman Brothers, has landed at Barclays Capital in London.

Fears about counterparty credit risk has some market players talking about a flight to exchange-traded and away from the over-the-counter market.