Credit Derivatives


  • TOKYO, Feb 6- Japanese government bonds ticked up on Friday, erasing earlier losses after the Bank of Japan's buying operation unearthed limited selling interest among brokers, particular at the longest end of the yield curve. Ten-year JGB futures rose 0.12 point to 147.45, reversing earlier falls to 147.14. The BOJ bought a total of 1.18 trillion yen of JGBs on...

  • Wing Chau and his firm Harding Advisory LLC were found liable by Securities and Exchange Commission Administrative Law Judge Cameron Elliot. The SEC had accused Chau and his firm of allowing a hedge fund to control which assets backed a $1.5 billion structured collateralized debt obligation known as " Octans I CDO Ltd" without disclosing that critical...

  • Dec 16- A former bond trader was sentenced to 2-1/ 2 years in prison Tuesday after admitting to manipulating prices of mortgage debt, causing a $9 million loss at a unit of Bank of New York Mellon Corp.. Prosecutors said Green entered fake CMO sales into the trading system of BNY Mellon's Pershing LLC clearing unit, which handled Crocker trades and related...

  • U.S. swaps regulator wants tighter clearing house rules Thursday, 4 Dec 2014 | 11:17 AM ET

    WASHINGTON, Dec 4- Regulators should consider tighter rules for clearing houses given their crucial role as guardians against market routs after the 2007-2009 credit crisis, a senior U.S. swaps regulator said on Thursday. The Commodity Futures Trading Commission should take a first step towards subjecting clearing houses to more standardized regular...

  • Moody's downgrades Japan's sovereign debt rating Monday, 1 Dec 2014 | 3:47 AM ET

    TOKYO, Dec 1- Moody's Investors Service on Monday downgraded Japan's sovereign debt rating by one notch to A1 from Aa3, citing heightening uncertainty over the country's ability to hit its debt-reduction goal. The announcement briefly sent the yen to a seven-year low against the dollar and pushed 10- year Japanese government bond futures down by 10 ticks.

  • The purchases were part of a broad U.S. bond market rally in the wake of record low 10- year yields across Europe and a robust $35 billion five-year Treasuries note auction, analysts said. At 2:06 p.m. EST, 34,856 contracts of 10- year Treasury note futures for March 2015 delivery traded at a price of 126-9/ 32 and 18,950 contracts of March 2015 30- year Treasury...

  • TOKYO, Nov 21- The cost of insuring Japanese government debt has risen to a one-year high after Japanese Prime Minister Shinzo Abe's decision to postpone a tax hike sparked worries about the country's weak fiscal position. The spread on Japan's credit default swaps widened to 59.5 basis points over U.S. Japan's CDS has widened by 20 basis points in the last two...

  • NEW YORK, Nov 20- Six years of interest rate suppression by the U.S. "The high-yield market is sort of in a bubble and sooner or later there will be a price paid for that," said Carl Icahn, the billionaire investor who said he owns credit default swaps on high yield debt against the 5- year U.S. Martin Fridson, chief investment officer of wealth management firm Lehmann...

  • *Ratings downgrades hit bonds and credit default swaps. LONDON, Oct 24- Investors demanded higher yields to hold Tesco's debt on Friday while the cost of insuring against default rose sharply after ratings downgrades left Britain's biggest grocer hovering just above junk status. "The ratings remain on review for downgrade because Tesco has not yet announced...

  • Banks tear up rule book to cope with future crisis Wednesday, 8 Oct 2014 | 6:18 AM ET

    The world’s biggest banks have agreed to tear up the rule book on derivatives to make it easier to resolve a future failing firm like Lehman Brothers.

  • Fed's Lacker: I'm no fan of mortgage bond plan Friday, 19 Sep 2014 | 8:07 AM ET
    Jeffrey Lacker, president of the Federal Reserve Bank of Richmond.

    Richmond Fed's Jeffrey Lacker said that his dissent from the central bank's exit strategy stemmed from its mortgage-backed securities plan.

  • TOKYO, Sept 19- Japanese government bond prices were steady to slightly higher on Friday, erasing earlier losses despite gains in share prices, helped by short-covering after a recent sell-off. The 10- year JGB futures price rose 0.09 point to 145.50 while the 10- year cash JGB yield dipped 0.5 basis point to 0.560 percent.

  • WASHINGTON, Sept 17- The U.S. derivatives regulator on Wednesday proposed a new rule for safety margins for uncleared swaps, a last remaining building block in its efforts to make the $710 trillion global market safer.

  • WASHINGTON, Sept 17- The U.S. derivatives regulator on Wednesday met to propose a new rule for safety margins for uncleared swaps, a last remaining building block in its efforts to make the $710 trillion global market safer.

  • Banks and investors have already criticized Europe for diverging from agreed international standards and have warned that the European proposal could increase the cost of trading over-the-counter derivatives, such as interest rate swaps, in Asia by hundreds of billions of dollars, threatening systemic stability and potentially forcing EU banks out of the Asian OTC derivatives markets.

  • Why Bank Derivative Trades Aren’t So Risky Thursday, 13 Jun 2013 | 4:35 AM ET
    Warren Buffett called derivatives “financial weapons of mass destruction”

    Warren Buffett famously referred to derivatives as "financial weapons of mass destruction," but unless we accept that residential mortgages are too, the phrase glorifies them into something they are not.

  • Uh Oh: The Attempt to Regulate Swaps Is Failing Saturday, 6 Apr 2013 | 8:42 AM ET

    Clever finance critters are fleeing from swaps to futures, escaping the new regulatory regime that was a center-piece of Dodd-Frank.

  • After the unveiling of Libor rate-rigging practices among banks, eyes are turning to other markets, worrying that the manipulation would not be limited to Libor rates, the New York Times reports.

  • Banks' Fire Drill for Greece Election Saturday, 16 Jun 2012 | 7:25 AM ET

    Hundreds of employees at big firms, some part of special teams, will be on standby this Sunday, awaiting the results of Greece’s pivotal election. The New York Times reports.