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Hannover-based bank Norddeutsche Landesbank Girozentrale is set to offload the risk of a EUR383 million portfolio of East German multi-family commercial mortgage loans to investors through a synthetic securitization sponsored by Kreditanstalt fuer Wiederaufbau, a state-owned German bank.
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Operational commitments dealers made last fall to the Federal Reserve Bank of New York have largely been met, said David Carlson, senior managing director and global head of credit derivatives structuring and marketing.
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London-based structured credit manager Eiger Capital and Credit Suisse are priming a novel synthetic collateralized debt obligation in which subordination increases are linked to management performance. -
Reacting to U.S. consumer price index data Wednesday, players in Europe snapped up protection on indices.
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Peyton Manning, quarterback for the Indianapolis Colts and Wednesday's luncheon keynote speaker, fielded questions before the enthralled audience resumed afternoon conference sessions on credit derivatives.
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The legal stability of credit-default swap contracts has come under threat from a U.S. District Court ruling against Société Générale. Legal officials say the ruling, which found in favor of swap counterparty Aon Financial Products and Aon Corporation, undermines standard CDS documentation and could have far reaching consequences because few legal precedents have been set for disputes between credit derivative participants.
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Hannover-based bank Norddeutsche Landesbank Girozentrale is set to offload the risk of a EUR383 million portfolio of East German multi-family commercial mortgage loans to investors through a synthetic securitization sponsored by Kreditanstalt fuer Wiederaufbau, a state-owned German bank.
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Barclays Capital in London has hired Nagi Bedawi, a trader at hedge fund Eton Park Capital Management. He joined Monday as a director trading equity volatility, reporting to Franck Lacour, head of volatility trading in London. Bedawi referred calls to the press office.
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Demand for zero-coupon bonds coupled with equity tranches is gaining ground as high-yield investors latch onto the leveraged structures to beef up risk/return profiles. "Rather than take on a sub-investment grade bond, they are buying equity that is leveraged to investment grade and getting better return from their exposure," said one structuring official, noting specialist investment funds in the U.S. are making up the bulk of buyers.
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Months of spread tightening on the European iTraxx suite reversed this week on the back of players exiting long bond/short credit-default swap positions. Traders said last week's downturn in the cash equity markets acted as a signal for people to take profit and buy protection on the indices, which drove spreads wider. "People have been trigger-happy calling the chop," said one London-based trader. The five-year European Main index broadened to 30.5 basis points Tuesday from 26 bps last week, five-year crossover to 252 bps from 225 bps and the five-year HiVol to 54.25 bps from 45 bps over the same period. There was also widening in index tranches, with iTraxx seven-year 3-6% 25 bps wider at 155 bps.
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Tim Collins has joined Lehman Brothers in New York as head of U.S. synthetic marketing. He focuses on equity swaps and reports to Mike Lawsky, head of U.S. portfolio and synthetic sales. Reached at Lehman on his first day, Collins said his hire is part of a new effort and he will be hiring a team of about three people in coming months.
