United States

Whatever the wisdom of tailoring monetary policy to the gyrations of the global equity markets, the Fed’s likely caution could clear the way for a wall of FIG supply once calm returns.

Law firm Reed Smith has hired an experienced lawyer from Latham & Watkins to its global energy and natural resources group in Washington.

The global stock market meltdown caused a sharp selloff in US equities on Monday and the VIX index revealed investors’ fear of further falls.

A pair of European banks took advantage of a window of issuance before the US holiday lull this week to price new dollar benchmarks.

Changes to rules governing the composition of US credit index CDX HY will improve the product’s relevance to debt markets and help address its recent disconnect from cash bonds, said market makers.

Futures markets suggest that traders have already priced in a US September rate hike, implying that the impact of the move may not be as dramatic as once feared.

Weak demand signals from China and increasing currency volatility have extended losses for the copper futures and options market.

Apax is acquiring a majority stake in FullBeauty Brands, the US plus-size fashion retailer, and has obtained the commitment of four banks to the deal’s debt financing.

Markit is set to unveil changes in CDX HY, the US high yield credit derivatives index, aimed at making it more useful as a hedging tool for cash bond investors and reviving ailing trading volumes in high yield credit.

Widespread concern over China’s currency strategy put the brakes on European banks’ use of the dollar market this week, which began with a $7.5bn raid on the currency by four borrowers.

With China’s devaluation having brought rising uncertainty across global markets, volatility measures for many options on exchange traded funds have not kept pace with those that reference their underlying securities.

The shift towards centrally clearing derivatives has contributed to a decline in the total amount of collateral supporting non-cleared derivatives transactions, according to the latest International Swaps and Derivatives Association (ISDA) Margin Survey, with cleared transactions gaining from the swing.