Hedge funds transfer billions of dollars to their trading counterparty banks and their affiliates to collateralize their obligations under derivatives transactions, and most of this collateral -- referred to as initial margin, upfront collateral or the Independent Amount in an ISDA Credit Support Annex (CSA) -- remains with the bank counterparty without regard to the mark-to-market value of the trades.
Standard Chartered has made a raft of senior equity hires as it builds an Asian equity unit from scratch, including its first foray into equity derivatives.
Economic uncertainty and the specter of defaults are triggering an upturn in the use of recovery swaps.
The Royal Bank of Scotland is setting up an Asia-focused derivatives-related corporate financing and risk solutions team to be based in Hong Kong.
Edouard Huntziger has been let go from his role as v.p. of credit hybrids and exotics at JP Morgan in Hong Kong.
Lehman Brothers’ fx strategists believe non-deliverable forward rates are pricing in too much appreciation of the Taiwanese dollar versus the U.S. dollar.
Mark Overley, a managing director in fund derivatives at Citigroup, has left the bank for reasons that could not be determined.
-Adam Glass, partner at law firm Linklaters in New York, on the strength of mechanisms for settling credit default swaps referencing monolines.