Credit sell-off has room to run and pricing is out of whack, says BNP Paribas
The credit market sell-off could have further to go despite recent widening and is “in the process of a late-stage business cycle unwind”, according to a strategist note seen by Creditflux

ESMA pushes for continued UK clearing access in event of no-deal Brexit
The European Securities and Markets Authority will support continued access to UK central clearing counterparties for EU clearing members and trading venues after 30 March in the event of a no-deal Brexit, the organisation has said

10 bidders line up for Astaldi CDS auction as Morgan Stanley swaps in for Mizuho
There will be 10 participating bidders to an auction to settle Astaldi credit default swaps, with the Determinations Committee unanimously approving Morgan Stanley’s involvement as Mizuho dropped out

Astaldi credit event auction deadline looms for participating bidders
Firms wishing to take part next week in a credit event auction to settle Astaldi credit default swaps have until 5pm London time today (23 November) to submit participating bidder letters to the Determinations Committee

Spanish €2.3 billion SRT referencing project finance loans suffers downgrade
A junior debt tranche in a €2.3 billion significant risk transfer originated by Banco Santander has suffered a downgrade less than a year after its launch

European CDS index tightens inside US even as bonds languish
Credit derivatives markets have hit a key point of trend reversal this week, with the iTraxx Europe five-year CDS index trading inside its US counterpart CDX IG for the first time since May

Ex-Citi CDO trading chief joins Jefferies as head of European fixed income
Jefferies has appointed a former Citi European credit and pre-crisis CDO trading head to lead its European fixed income business

September: Ucits at a glance
Ucits funds continue to post mixed returns

UK and EU seek to quell post-Brexit derivatives hiatus fears, but race is on
The UK has ramped up efforts to avoid a cliff edge and minimise hiatus risk for over-the-counter derivatives after Brexit, with the UK Treasury publishing draft regulations to amend onshored European Market Infrastructure Regulation. But, with the 30 March exit looming large, lawyers warn that transitional uncertainty will continue to rattle the market until the plans find European Union accord

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

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

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

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

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

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

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