http://www.creditflux.com/ en-gb Fri, 12 Mar 2010 13:51:00 UTC 60 http://www.creditflux.com//2010-03-12/Play-financials-underperformance-through-options-says-bank-desk/ 2010-03-12 13:51:00 Markit has released provisional lists of constituent changes for the upcoming rolls of iTraxx and CDX corporate credit indices. The main indices, Europe and IG, see little change. There are only two name-changes proposed for Europe, with auto name Compagnie Financiere Michelin (95/100bp) and consumer Imperial Tobacco (92/97bp) replacing Volvo… http://www.creditflux.com//2010-03-12/Dealers-agree-iTraxxCDX-provisional-changes/ 2010-03-12 09:56:00 Rumours of a new three-year issue from Greece were apparently behind the sovereign’s credit default swap widening more than 20bp today to 306bp http://www.creditflux.com//2010-03-11/Greece-heads-wider-on-new-issuance-rumours/ 2010-03-11 20:32:00 Yesterday’s trading saw an outperformance of LCDX over HY http://www.creditflux.com//2010-03-11/LCDX-outperformance-holds-firm-in-face-of-cash-bwic/ 2010-03-11 10:22:00 Markit has released the provisional lists of names for new series of the SovX family of indices. Dealers have affirmed the 15 existing names for SovX Western Europe into series three, but introduce six new names to the Global Liquid Investment Grade index, while removing four. Australia, Brazil, France, Colombia,… http://www.creditflux.com//2010-03-11/Markit-releases-SovX-series-three-provisional-lists/ 2010-03-11 09:00:00 The date for an auction to settle Aiful credit default swaps has been set as Thursday 25 March, according to Creditex’s website. Initial bidding will take place from 9.45am JST, with initial results at 10.30. Final results will be published after 2pm JST. The Isda committee ruled in December that… http://www.creditflux.com//2010-03-10/Date-set-for-Aiful-CDS-auction/ 2010-03-10 16:55:00 http://www.creditflux.com//2010-03-10/Bank-hires-highyield-sales-specialists-from-broker/ 2010-03-10 14:17:00 The rally in credit markets is continuing today, with strength in European sovereigns seeing the SovX Western Europe index dip below 70bp to 69.5bp http://www.creditflux.com//2010-03-10/Rally-back-on-despite-mixed-European-picture/ 2010-03-10 13:41:00 A recent JP Morgan poll of CDX IG index correlation traders has elicited diverging responses on where dealers should focus efforts to improve liquidity, say sources http://www.creditflux.com//2010-03-10/Tranche-traders-torn-between-perpetual-indexannual-roll/ 2010-03-10 12:47:00 The Wall Street Journal reports that some professional investors have recently started buying up retail corporate bonds that include a survivor’s option – an option for the holder to redeem the bond early. Such bonds, which are sometimes issued by large investment grade corporates targeting retail investors, typically trade at… http://www.creditflux.com//2010-03-10/Buyers-reapgrim-gain-from-survivor-option-bonds-reports-WSJ/ 2010-03-10 12:04:00 Markit has released a timetable for the forthcoming rolls of credit default swap indices later this month. iTraxx indices and CDX IG are due to roll on Monday 22 March, with CDX HY rolling a week later on 29 March. Dealer provisional lists for iTraxx indices and CDX IG will… http://www.creditflux.com//2010-03-10/Markit-releases-index-roll-timetableinitial-changes/ 2010-03-10 10:39:00 In a report published last week, JP Morgan notes that the three-to-five year curve on the North American CDX index is at least 20 basis points too steep based on historical trading patterns. Short-end curves have generally steepened amid the recent rally, but the bank believes that the steepening in… http://www.creditflux.com//2010-03-10/Short-end-CDX-curves-should-flatten-says-JP-Morgan/ 2010-03-10 10:35:00 A theme emerging from yesterday’s 2010 TSAM conference is that the regulatory push towards mandatory central clearing of credit default swaps looks likely to be slower than previously expected. Speakers noted that numerous negotiations are ongoing both in the US and Europe and much work remains to be done to… http://www.creditflux.com//2010-03-10/Regulators-clearing-push-faces-delay-say-conference-attendees/ 2010-03-10 09:01:00 IntercontinentalExchange says that its North American credit derivative central counterparty, ICE Trust, has cleared $4.3 trillion in notional of credit default swaps in its first year of existence. The clearer, which began operations on 9 March last year, has cleared more than 55,000 transactions on 31 indices and 29 individual… http://www.creditflux.com//2010-03-09/ICE-says-it-has-cleared-43-trillion-of-US-CDS/ 2010-03-09 13:48:00 In a report published last week, JP Morgan calculates that the new single name LCDS contract, which is due to launch in April, should price 10-20% tighter than existing cancellable contracts. The new “bullet” loan-only credit default swaps differ from the existing products in that they are not cancelled when… http://www.creditflux.com//2010-03-09/Bullet-LCDS-should-trade-up-to-20-tighter-calculates-JP-Morgan/ 2010-03-09 11:41:00 UBS strategists yesterday suggested putting on a long European sovereign and short investment grade corporate trade yesterday. The bank recommended selling protection on SovX at 67.75bp and buying iTraxx main in the same size at 74bp. In a research note sent to clients, UBS said this slightly negative carry trade… http://www.creditflux.com//2010-03-09/UBS-recommends-regsqueeze-European-credit-trade/ 2010-03-09 11:29:00 The overall rally in credit markets continued strongly yesterday, with spreads tighter pretty much across the board http://www.creditflux.com//2010-03-09/High-yield-index-lags-as-credit-spreads-continue-to-tighten/ 2010-03-09 11:20:00 The Financial Times and other sources report on new calls for regulation of sovereign credit default swaps. Mario Draghi, ECB board member and chairman of the G20 talking shop the Financial Stability Board, told a news conference yesterday that greater regulation of the market is likely, because sovereign CDS trading… http://www.creditflux.com//2010-03-09/Central-banker-predicts-regulation-of-sovereign-CDS/ 2010-03-09 10:03:00 Credit indices have continued to tighten today, with comments on Greece support by French president Nicolas Sarkozy over the weekend adding to the firmer tone http://www.creditflux.com//2010-03-08/Credit-strengthens-after-weekend-datacomments/ 2010-03-08 13:33:00 Credit markets are rallying again today amid signs of improving prospects for European sovereigns and the US economy http://www.creditflux.com//2010-03-05/Rally-picks-up-pace-on-improving-EuropeanUS-economics/ 2010-03-05 12:31:00 The European Commission is holding a meeting in Brussels today with regulators, rating agencies, banks and investors over the market practice of trading credit default swaps on sovereign debt, it has been variously reported. Some European officials are calling for the outright shorting of government debt risk through ‘naked’ CDS… http://www.creditflux.com//2010-03-05/Traders-wait-on-ECs-sovereign-CDS-meeting/ 2010-03-05 12:08:00 Corporate credit markets in Europe have stayed flattish again today with the SovX Western Europe again outstripping iTraxx Europe http://www.creditflux.com//2010-03-04/Curvesofftheruns-active-as-roll-prepositioning-begins/ 2010-03-04 11:53:00 In their latest Credit Markets Daily commentary, Goldman Sachs strategists claim that credit is still in a ‘sweet spot’ and will continue to offer substantial returns in 2010. They also say that mutual fund demand is likely to remain strong. Despite two weeks of record outflows from credit funds –… http://www.creditflux.com//2010-03-04/Credit-insweet-spot-for-returns-in-2010-says-Goldman/ 2010-03-04 11:25:00 A boutique investment bank has made a senior hire in London http://www.creditflux.com//2010-03-03/Managers-London-office-head-jumps-to-growing-boutique-bank/ 2010-03-03 11:33:00 If US traders were hoping that Europe would give some direction to credit flows today then they will have been little helped by the virtual flatness of iTraxx Europe and Crossover so far today http://www.creditflux.com//2010-03-03/Traders-cut-risk-as-Greece-rumours-circulate/ 2010-03-03 11:30:00 In its most recent European Credit Alpha research piece, Barclays Capital argues that there are negative basis opportunities in fallen angel names. Short duration bonds issued by these companies make sense in the current low rate environment, says the report, and the near term default risk is low, for bonds… http://www.creditflux.com//2010-03-03/Barcap-touts-fallen-angel-negative-basis-trades/ 2010-03-03 09:58:00 IntercontinentalExchange has announced that its US and European central counterparties have now cleared $6.3 trillion in gross notional of credit default swaps since they were launched. It says that ICE Trust, the US entity, accounts for $4.2 trillion of this volume, with Ice Clear Europe having cleared $2.1 trillion. The… http://www.creditflux.com//2010-03-02/ICE-says-it-has-cleared-63-trillion-of-credit-default-swaps/ 2010-03-02 14:07:00 Fitch Solutions has announced that software provider SuperDerivatives will use its credit default swap prices as part of its valuations service. SuperDerivatives provides valuation solutions for banks, corporations, fund managers and others, according to the announcement. http://www.creditflux.com//2010-03-02/SuperDerivatives-links-up-with-Fitch-Solutions-on-CDS-pricing/ 2010-03-02 12:27:00 US traders reported yesterday that cash credit continues to receive strengthening appetite, with smaller high yield new issuance doing particularly well http://www.creditflux.com//2010-03-02/High-yield-cash-appetite-growing-say-traders/ 2010-03-02 11:55:00 Outperformance of the iTraxx SovX Western Europe index over recent sessions has seen it reach virtual parity with the Europe investment grade corporate credit index today at 84bp http://www.creditflux.com//2010-03-02/SovXEurope-hit-parity-as-Greece-leads-charge-tighter/ 2010-03-02 11:54:00 March looks set to be another month for lucrative opportunism in middle east credit trading http://www.creditflux.com//2010-03-02/Gulf-comes-back-into-credit-trading-focus/ 2010-03-02 10:32:00 Trading of European and US credit index correlation looks set for a key divergence this month http://www.creditflux.com//2010-03-02/EuropeUS-traders-split-on-tranche-roll/ 2010-03-02 10:31:00 A new group of hedge funds and bank prop desks chasing yield are bidding up prices in the $149 billion distressed US auction rate securities market http://www.creditflux.com//2010-03-02/Distressed-funds-chase-battered-auction-rate-securities/ 2010-03-02 10:30:00 Dealers have completed the framework for new North American loan credit default swap documentation http://www.creditflux.com//2010-03-02/Dealers-pin-hopes-on-LCDS-bullet-relaunch/ 2010-03-02 10:28:00 Amidst challenging volatility in February, many global macro funds have turned to various trading strategies around European sovereigns http://www.creditflux.com//2010-03-02/Sovereigncorporate-play-drives-credit-markets/ 2010-03-02 10:24:00 A large number of loan traders have been caught out by the sudden slow-down of the high yield bond market http://www.creditflux.com//2010-03-02/Loan-traders-caught-out-by-refi-trade/ 2010-03-02 10:23:00 Recent increased two-way trading of sovereign credit has put SovX index options on the map as a powerful tool for expressing views on volatility http://www.creditflux.com//2010-03-02/Dealers-gear-up-for-SovX-option-trading/ 2010-03-02 10:18:00 Greece news has led trading activity at the start of the week, with a slight rally in the broader market following speculation of a rescue package in the works to help the sovereign http://www.creditflux.com//2010-03-01/Greece-holds-focus-in-fragile-rally/ 2010-03-01 12:53:00 JP Morgan recommends going short the iTraxx HiVol index paired with a long on the subordinated financials basket of the European index. In a recent research report, the bank notes that recent market weakness has raised the spectre of a double dip recession, and says that more highly leveraged companies… http://www.creditflux.com//2010-03-01/Go-long-financial-subsshort-HiVol-suggest-JP-Morgan/ 2010-03-01 12:28:00 In latest “Credit line” research, published on Friday, Goldman Sachs strategists look at the implications of Basel II proposals on the credit default swaps market. These changes to the Basel II regulation would be effective from 31 December this year. They introduce higher capital requirements for banks to trade and… http://www.creditflux.com//2010-03-01/Buy-senior-protection-ahead-of-Basel-II-changes-says-Goldman/ 2010-03-01 12:24:00 Credit indices are ending a week of choppy trading on a rally http://www.creditflux.com//2010-02-26/Financials-active-as-credit-ends-week-onrally/ 2010-02-26 12:58:00 A bank has hired an EM corporate credit trader in London http://www.creditflux.com//2010-02-24/Bank-adds-emerging-markets-credit-trader/ 2010-02-24 19:56:00 Interdealer credit and equity derivatives broker Phoenix Partners will donate all revenues and commissions it earns globally tomorrow to various charities in memory of a former colleague, Joshua Bruce Sawyer. This is the fourth year running the firm has made this February commitment. This year's charity recipients include St. Jude's… http://www.creditflux.com//2010-02-24/Brokerage-holds-fourth-annual-memorial-day/ 2010-02-24 13:24:00 http://www.creditflux.com//2010-02-24/Bank-hires-experienced-high-yield-trader/ 2010-02-24 12:54:00 European credit is trading more-or-less flat in today’s session, following the weakness seen yesterday http://www.creditflux.com//2010-02-24/Offset-rangetrading-with-idiosyncratic-plays-say-traders/ 2010-02-24 12:16:00 General Electric Credit Corporation curves were actively traded yesterday, say traders http://www.creditflux.com//2010-02-24/General-Electric-leads-active-financials-after-bond-launch/ 2010-02-24 11:31:00 Sovereigns and financials are yet again driving market sentiment today, with a widening of spreads prompted by Greece debt announcements and weak Commerzbank results http://www.creditflux.com//2010-02-23/Sovereignsfinancials-prompt-heavier-tone/ 2010-02-23 13:17:00 Yesterday was a busy day to begin the week for CDX IG and HY index options trading http://www.creditflux.com//2010-02-23/Index-relative-value-shift-boosts-options-trading-volume/ 2010-02-23 12:06:00 After a slowish start, the rally in credit markets has picked up pace today http://www.creditflux.com//2010-02-22/Spreads-surge-tighter-as-remaining-shorts-throw-in-towel/ 2010-02-22 13:48:00 IntercontinentalExchange has announced that it has appointed former Icap official Christopher Edmonds as president of ICE Trust US, its clearing house for North American credit derivatives. Edmonds replaces Dirk Pruis who, according to the exchange’s statement, has left to spend time with his family before pursuing further professional interests. http://www.creditflux.com//2010-02-22/ICE-replaces-clearing-house-head/ 2010-02-22 11:18:00