Europe-US convergence poses trading conundrum
A convergence between European and US investment grade credit index spreads over recent weeks has left strategists nonplussed, with some suggesting a trend reversal could be on the way

Past returns: Citi kickstarts CSO market
Five years ago in Creditflux, we reported on the revival of the synthetic CDO market, with Citi leading the push

Points up front: Creditflux makes significant SRT call
They were once referred to as regulatory capital relief trades (or reg-cap trades), but now no one can agree on what to call them

DTCC begins test phase for blockchain credit derivatives platform
15 of the world’s largest banks have begun testing the blockchain-based credit derivatives platform by the Depository Trust & Clearing Corporation

Astaldi CDS holders face Thursday deadline on auction deliverables
Market participants with exposure to Astaldi have until 5pm London time tomorrow (8 November) to submit any other potential deliverable obligations into the auction to settle the company’s credit default swaps

Sears CDS auction deliverables rejected due to lack of docs and identifiers, says DC
An auction to settle credit default swaps referencing Sears Roebuck Acceptance Corp did not include several obligations on its initial list of deliverables due to lack of documentation or isin/cusip identifiers, the Americas Credit Derivatives Determinations Committee has said

Seven deliverables valid for Sears CDS auction, as seven others split DC panel
There will be seven obligations deliverable into an auction on 14 November to settle credit default swaps referencing Sears Roebuck Acceptance Corp, the Americas Credit Derivatives Determinations Committee has decided. But members of the 15-strong DC were split over whether to include another seven potential deliverables that did not make the cut

Fixed income heads join forces to launch macro credit fund manager in London
Resco Asset Management, a new asset manager based in London, has launched and set about marketing its debut fund: Resco Macro Credit Fund

Weatherford CDS routed as quarterly loss adds to ratings woes
Five-year credit default swaps referencing CDX HY constituent Weatherford International have weathered a battering over recent days

Pimco generates listed opportunistic energy credit fund
Pimco is eyeing the energy sector for a new opportunistic credit fund, according to US regulatory filings.

UK prepares derivative regs for no-deal Brexit
The UK Treasury is seeking to amend onshored European Market Infrastructure Regulation (EMIR) legislation as it battles to avoid the risk that the country will leave the European Union without an effective regulatory framework for over-the-counter derivatives, central clearing counterparties and trade repositories in the event of a no-deal Brexit

Supermarket scramble as SuperValu CDS surges wider on UNFI buy-out
The spread of five-year credit default swaps referencing SuperValu, a CDX HY index constituent, more than doubled yesterday, according to IHS Markit data

Sears CDS deliverables to be decided Friday ahead of 14 November credit event auction
The Americas Credit Derivatives Determinations Committee will meet this Friday (26 October) to decide auction terms and deliverable obligations for credit default swaps referencing Sears Roebuck Acceptance Corp

Derivatives margin threshold should be €100 billion notional not €8 billion, says Isda
A regulatory threshold that requires counterparties to post initial margin (IM) on derivatives trades if they hold €8 billion notional or more exposure should be raised to €100 billion, the International Swaps and Derivatives Association has argued

Astaldi credit event auction will have two deliverables, says DC
Only two Astaldi bonds are deliverable into an auction to determine the final price of its credit default swaps, the Determinations Committee has indicated

CLO baskets empty as Sears declares bankruptcy
Although Sears has been a prevalent name in loan trading over the years, it had been cleared from most CLO portfolios well before the event

Experienced SRT specialist parts ways with Apollo
A big name in the significant risk transfer (SRT) market has left Apollo Global Management in London

Isda transfers credit determinations secretary role to subsidiary
The International Swaps and Derivatives Association has relinquished its role as secretary to the credit derivatives determinations committees (DCs) with the appointment of a new unit, DC Administration Services (DCAS), to manage this function

White & Case promotes seven debt specialists to partner
The law firm has promoted several debt specialists to partners around the world

Isda extends deadline for derivatives benchmark consultation
The International Swaps and Derivatives Association has extended the fast-approaching deadline for its consultation on derivatives benchmark fallbacks, to allow more time for responses

Market rout drives US/Europe credit convergence, as Brazil leads Latin widening
Credit spreads have sharply widened globally as financial markets are being rocked by concerns for a trade war and rising US rates. An equity-led rout in the US yesterday afternoon

Man Numeric launches credit platform and appoints co-heads of credit
Man Numeric, the quantitative investment business of Man Group, has launched a new credit unit and appointed two officials to lead the business

Correlation strengthening between company ESG factors and CDS spreads, says Hermes
There is a “significant correlation” between companies that have stronger environmental, social and governance (ESG) practices also benefitting from tighter credit default swap spreads, according to research from Hermes Investment Management

Hard Brexit threatens systemic cliff edge for derivatives, warns joint paper
A no-deal Brexit could have a systemic effect on derivatives markets as it would immediately restrict EU 27 firms from transacting with UK entities and acting as clearing members to UK central counterparties, a group of major trade bodies has warned in a paper published today

ArrowMark builds in London with big SRT hire
ArrowMark is one of the biggest investors in the SRT market, but unusually it conducts most of its business out of the US. It has now added to its presence in London with an experienced official joining its SRT business