SEC forces Ice into single-name CDS clearing U-turn
Clearing house has been told its own rules prevent it from shelving buy-side clearing for single-name CDS contracts
View ArticleSingle-name CDS clearing held up by fears over SEC regime
Temporary rules for portfolio margining by clients are set to expire in December. Hedge funds say they will stay on the sidelines until they know what happens next
View ArticleSefs and exchanges echo EC's CDS licence complaints
The European Commission believes the largest derivatives dealers used their influence to prevent exchange trading of credit default swap contracts between 2006 and 2009 – and as new derivatives trading...
View ArticleCDS licence approvals too slow, Sefs claim
Sefs claim their applications for licences to offer single-name and index CDSs are moving at a glacial pace – echoing allegations made by the European Commission
View ArticlePricing CDSs’ capital relief
Positions in credit default swaps (CDSs) are eligible instruments to reduce some Basel III capital requirements. The value of this benefit should be reflected in the price. Chris Kenyon and Andrew...
View ArticleAfter three months, Ice CDS index future has less than 70 open contracts
Launched with a fanfare earlier this year, trading in Ice’s new credit index future has since stalled. Critics say it is dead, but its backers argue it is too soon to write the contract off. Peter...
View ArticleCapital relief accounts for 70% of some CDS spreads, quants say
New research sheds light on implications of product's role as regulatory capital hedge
View ArticleCutting Edge introduction: pricing the CVA doom loop
The credit valuation adjustment charge in Basel III allows capital relief for credit default swap (CDS) hedges. But once a product has a new use, it creates new demand – and prices must change. That...
View ArticleSEC extends interim CDS portfolio margin rule
Buy-side firms angry about continuing margin disparity and uncertainty
View ArticleCredit derivatives house of the year: Credit Suisse
Credit Suisse has remained focused on the structured credit market while others have retreated – and racked up a record-breaking performance in 2013 as a result
View ArticleFCM models for CDS portfolio margin "varied widely"
Finra says year-long approvals process revealed "notable outliers"
View ArticleWhy CDOs work
Collateralised debt obligations have largely gone under the radar since the 2007 financial meltdown, when their market collapsed. Nearly every attempt at explaining the cause of their failure pointed...
View ArticleIsda asked to consider "potential" Argentina CDS event
Holders of CDSs on Argentine debt claim contracts due to expire before the country's June 30 coupon payment should still be valid if the country later defaults.
View ArticleS&P court loss in Australia unlikely to spark rival claims
Dismissal of appeal by rating agency to have implications in Australia and other common law countries but not US
View ArticleScotland secession unlikely to split UK CDSs, analysts say
A 'yes' vote in the referendum could result in outstanding UK CDSs being split in two, but analysts are not holding their breath
View ArticleScotland secession: would UK CDSs be affected?
If Scotland votes for independence in September, it will be a big moment for credit markets – and, thanks to a quirk in the wording of legacy CDS contracts, a potential succession event for holders of...
View ArticleCutting Edge intro: maths versus machine
Many banks have turned to fancy chips to boost computing speed, but there is a mathematical technique that claims better results at a lower cost. Its proponents see it as a way out of the IT rat race,...
View ArticleHow to hedge CVA without being hurt
Banks can reduce their CVA capital burden by using regulator-approved hedges, but only at the risk of painful accounting losses. The solution is a new hedging instrument that works under both regimes....
View ArticleCDS de-correlation a threat to CVA hedging, traders warn
The decline in single-name trading could cause credit default swap indexes to decouple from their constituents
View ArticleGoldman Sachs bought $24 billion CDS portfolio from UBS
UBS in Australia sold off its CDS portfolio in fixed income scale-back, source reveals; deal was part of efforts to meet impending capital requirements
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