Derivs - Credit

Credit market veterans are all too aware that the determination of CDS credit events is far from straightforward.

Tuesday’s intervention by the Bank of England into the debate on the future of euro clearing is another welcome move from regulators. The debate has been too long dominated by political noisemaking.

The Bank of England, the International Swaps and Derivatives Association and a number of other industry trade bodies from across Europe have piled pressure on the European Union to deal with the risks of a disorderly Brexit for derivatives contracts.

There is a “convincing relationship” between risk coming from poor application of environmental, social and governance (ESG) policies, and the credit default swap (CDS) spreads of corporate issuers, according to a new report by Hermes Investment Management.

We noted last week that the markets may be guilty of complacency on Italy’s budget, and so it proved.

The International Swaps and Derivatives Association (ISDA) has released a white paper on smart derivatives contracts, setting out a framework for how these could be built and function in scenarios such as defaults.

The appeal of populist, often nativist, agenda to electorates disgruntled with economic stagnation and rapid demographic change has been underestimated in recent years — not least by bond markets.

Five trade bodies began lobbying efforts on initial margin phase-in in earnest this week, warning global regulators of severe consequences if incoming rules are not amended.

Three more credit default swap contracts are referencing non-preferred senior bonds following the latest roll of the iTraxx indices, as bank debt investors try to deal with a gradual transition towards a bail-in regime in Europe.

For relentless focus on MiFID II issues, for its overall organic growth, for the lack of merger distractions and for the stunning growth of its US credit derivatives business, Tradition is GlobalCapital’s Interdealer Broker of the Year.

GlobalCapital is delighted to announce the winners of its 2018 Global derivatives awards, which were unveiled at the Jumeirah Carlton Tower in London on Tuesday September 25.

For its innovation in markets including FX options and non-deliverable interest rate swaps, stellar performance and growth and an approach that seems to put the customer first, LCH is GlobalCapital’s Derivatives Clearing House of the Year.