While progress made on the notion of credit default swap regulation has been significant, this Learning Curve argues that having a central counterparty system will not fix the problems that led to today's crisis.
Fergus Slinger, a managing director in equity derivatives flow sales, has exited Deutsche Bank in London. Three equity derivative junior traders at the bank have also gone.
Investors were selling EUR/USD at-the-money straddles to exit positions Thursday in a move to balance their books. Liquidity is tight, prompting traders to put on short-maturity trades.
U.S. hedge funds, prop desks and real money accounts have been looking to European retailers this week, as names in the region caught up with already gapped out spreads on their North American counterparts.
Demand for derivatives valuations from banks and asset managers is up 250%, according to SuperDerivatives.
The Markit iTraxx LevX index of credit default swaps linked to European loans fell to a new record on fears that the global recession is getting worse and on word of USD846 million portfolio auction.
JPMorgan Chase reportedly is planning to reduce the size of its derivatives desk in London.
Credit Suisse has announced plans to cut 5,300 jobs from its investment banking arm after recording a net loss of CHF3 billion (USD2.48 billion) in the first two months of th is quarter.
The process of valuing Lehman Brothers Minibonds sold in Singapore may take longer than originally expected because of the various swaps in the structured notes, according to the trustee for the instruments, HSBC Institutional Trust Services.
Pilgrim’s Pride, the chicken and prepared foods company that filed for Chapter 11 on Monday, will not need a settlement auction because credit default swaps on the name were virtually non-existent.
The so-called breakeven default rate for the iTraxx Crossover is now 47% for its constituent names, after the index blew past 1,000 basis points for the first time earlier this week, according to BNP Paribas analysis.
--Keith Noyes, Asia-Pacific regional director for the International Swaps and Derivatives Association in Hong Kong, welcoming the introduction of CDS to India but noting that contracts should be traded over-the-counter.