United States

SumitG, a triple recourse programme sponsored and guaranteed by Goldman Sachs Group and Sumitomo Mitsui Trust Bank, will be backed at first entirely by senior tranches of European and Japanese RMBS. Over half of the collateral will be rated triple A, and none of the bonds are below A minus. Despite this the deal gets no rating benefit from the collateral pool.

In the lead up to the commencement of trading for short-term VIX options on Thursday, brokers and traders are scouring for signs of market appetite for the new contracts.

Size is still coming at a price for SSA borrowers, with European Investment Bank paying a slightly elevated new issue premium for a $4bn five year on Tuesday. Despite this, bankers said a second trade from Erste Abwicklungsanstalt confirmed the market is in robust health.

With macro factors causing investors to expect the US Federal Reserve to delay rate hikes, the looming earnings announcement cycle has come into focus for volatility traders.

After a year of solid performance, a spike in volatility across multiple asset classes helped some derivatives fund managers to put in a strong performance last month.

Hewlett-Packard ensured a memorable end to the third quarter as it printed one of the biggest deals of the year but paid a hefty new issue concession as it re-opened the dollar market after a tumultuous start to the week.

Santander fell victim to market spasms this week, pulling a dollar trade amid extreme volatility.

After a doom-laden selloff on Monday, a modest rebound for US large-cap equities failed to calm volatility levels.

Regulation of leveraged finance in the US remains one of the main topics of conversation, as well as a mixed blessing, for the European market, delegates at the 9th annual Leveraged Finance Conference in London were told on Monday.

The recent, sudden swoon by widely referenced credit default swap names Glencore and Volkswagen has regalvanised market participant’s call for measures that will improve single name liquidity.

Santander’s dollar senior holdco deal became the latest casualty of investors' growing risk aversion this week, and pressure is growing on those still looking to issue debt by the end of the year.

A modest rebound for US large-cap equities in early trading on Tuesday failed to calm volatility levels.