news, comment, analysis and data on the global business of credit trading and investing
Novation
Also called assignment, the process of transferring an outstanding derivative contract from one dealer to another. It is commonly used by hedge funds that unwind trades in order to get the best price available in the market. Novations are also used in managed single tranche CDOs and credit CPPI transactions to allow the manager to execute a trade or substitution at a better price than the one available from the dealer on the transaction.
Related stories
- Henderson promotes structured credit head 4 months ago
- LSE is one to watch for 2012 5 months ago
- Coco trigger debate may stymie issuance, say investors 5 months ago
- LCH Clearnet gears up for assault on “expensive” ICE Clear 5 months ago
- Isda plan may remove currency hurdle 6 months ago
- Growth in real money accounts drives CDS market flows 8 months ago
- A redesign for central clearing 9 months ago
- Buy-out loan innovation spreads from US to Europe 9 months ago
- Leveraged loan investors turn alchemists to extract pure mezz 9 months ago
