An institutional investor, believed to be a hedge fund, held a BWIC bids wanted in competition for loan-only credit default swaps last week. The investor came to the market looking to sell protection on about 78 names, which consisted of a bunch of five million and seven million contracts for five years and seven years. It is not clear how much traded. The identity of the investor could not be determined.
"You see this a lot more in CDS. It's kind of a new thing on LCDS," one trader said. "I can't recall [an LCDS BWIC] this large. There was one, maybe two months ago, but it was about eight names."