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Two Indian rating agencies have highlighted their concerns on the debt servicing ability of dollar bond issuer Jain Irrigation Systems amid a liquidity crisis in India. [ABSTRACT FROM AUTHOR]

In this round-up, two more Chinese corporations defaulted on their domestic bonds, Bank of China (BOC) said offshore bonds were cheaper than onshore in June, and the Hong Kong market welcomed ETFs targeting China's biotech and cloud computing sectors. [ABSTRACT FROM AUTHOR]

Baoshang Bank's takeover by the People's Bank of China, and the continuing after-effects on the country's banking sector, have forced regulators to adopt short-term measures to save smaller and weaker banks and securities houses. [ABSTRACT FROM AUTHOR]

Chinese authorities took over Baoshang Bank this week, the first time the state has taken control of a financial institution in two decades. Despite the central bank promising to guarantee most deposits held by Baoshang, yields on similarly rated banks' outstanding short-term debt jumped as issuance volumes tumbled — leading the central bank to take the 'unusual' move of injecting liquidity into the market for three consecutive days. Rebecca Feng reports. [ABSTRACT FROM AUTHOR]

In this round up, the China Securities and Regulatory Commission (CSRC) gave permission for eastbound Sino-Japan ETFs, Shanghai Stock Exchange (SSE) set up a scheme for investors to trade defaulted or high risk bonds, and the head of the Chinese banking regulator warned traders of 'huge losses' if they shorted the renminbi. [ABSTRACT FROM AUTHOR]

Distressed Chinese oil and gas producer MIE Holdings managed to repay on time the remainder of a dollar-denominated 2019 bond, though the company continues to face refinancing pressures. [ABSTRACT FROM AUTHOR]

Banca Finanziaria Internazionale S.p.A. has launched a new €50m basket bond transaction comprising 10 corporates and which benefits from a guarantee by SACE S.p.A., the Italian Export Credit Agency - backed up by the Italian government in the event of default. [ABSTRACT FROM AUTHOR]

The International Swaps and Derivatives Association (ISDA) has issued a new set of guidelines for central counterparty clearing houses (CCPs) in the wake of September's default at Nasdaq Clearing. [ABSTRACT FROM AUTHOR]

Credit default swaps (CDS) are a complicated product. But the past year has presented a few examples of market participants resorting to 'creative' tactics to optimise payouts. If the market fails to respond to concerns around the viability of CDS, the product may have to be rethought. [ABSTRACT FROM AUTHOR]

Swedish markets regulator Finansinspektionen (FI) on Wednesday called for lawmaker-backed resolution plans for clearing houses, in the wake of a default at Nasdaq clearing last September. [ABSTRACT FROM AUTHOR]

Trade body the Futures Industry Association (FIA) on Tuesday released recommendations on how to shore up clearing house (CCP) risk management processes in the wake of the €114m member default at Nasdaq Clearing. [ABSTRACT FROM AUTHOR]

Huachen Energy Co's dollar bonds recovered slightly after the Chinese company said it will not default on its $500m notes, despite skipping a coupon payment and failing to repay an onshore loan. [ABSTRACT FROM AUTHOR]

When market makers start sending runs (lists of prices) based on nation states rather than sectors it may be a harbinger of fundamental change in how European credit is traded. [ABSTRACT FROM AUTHOR]

Major post-trade company the Depository Trust & Clearing Corporation (DTCC) on Tuesday said it had moved to the testing phase of a new credit derivatives "warehouse" that processes credit derivatives trades with distributed ledger technology (DLT). [ABSTRACT FROM AUTHOR]

The International Swaps and Derivatives Association (ISDA) has moved away from its role as secretary of the special committees that rule on whether or not credit events have taken place that would trigger credit default swap payouts. [ABSTRACT FROM AUTHOR]

There is a "convincing relationship" between risk coming from poor application of environmental, social and governance (ESG) policies, and the credit default swap spreads of corporate issuers, according to a new report by Hermes Investment management. [ABSTRACT FROM AUTHOR]

Experts in the derivatives clearing market have been debating numerous elements of the default management process of Nasdaq Clearing, after a clearing member blew a €114m hole in the institution following a bad trade last week. Costas Mourselas reports. [ABSTRACT FROM AUTHOR]

Nasdaq Clearing said early on Monday that it had replenished 90% of its member default fund, adding it had "no indication" that a member would shirk on its commitments. The deadline for replenishment is on Monday. [ABSTRACT FROM AUTHOR]

Derivatives clearing specialists were left scrambling for information this week as lone Norwegian trader Einar Aas defaulted on his Nordic and German power portfolio, creating a €107m hole in Nasdaq Clearing's €166m Commodity Member Default Fund. [ABSTRACT FROM AUTHOR]

Larger investment funds are more likely to be active in credit default swap markets, according to new research from pan-European securities regulator ESMA. [ABSTRACT FROM AUTHOR]

Hangzhou Jianggan District Urban Construction and Comprehensive Development Co raised $200m from a bond, shrugging off news from last week that a Xinjiang local government financing vehicle (LGFV) had unexpectedly missed payments on a renminbi note. [ABSTRACT FROM AUTHOR]

The cost of insuring Turkish government debt has shot up as Turkey’s president Recep Tayyip Erdogan has refused to give way in a dispute with the United States. [ABSTRACT FROM AUTHOR]

India’s Reliance Communcations (RCom) tender and exchange offer, unveiled last week, would clear the issuer’s books of its $300m 6.5% 2020 bond. But since RCom defaulted on a payment for the notes last November, it is in no position to offer investors such paltry tender and exchange terms. [ABSTRACT FROM AUTHOR]

The cost of buying credit default swaps on Turkish five year government debt has stopped its upward trajectory and eased lower, even as the country’s standoff with the US continues. [ABSTRACT FROM AUTHOR]

Reliance Communications’ 2020 bond, which the company defaulted on last year, suffered a tumultuous week, hitting a new low after the telecoms company offered to buy back the $300m senior notes at a steep discount. [ABSTRACT FROM AUTHOR]

As lawmakers and regulators grapple with the increasing systemic importance of clearing houses (CCPs), Singapore Exchange on Thursday proposed new rules for its derivatives clearing house and central depository to better manage a member default. [ABSTRACT FROM AUTHOR]

An event of default has occurred on Hong Kong-listed Wuzhou International Holdings’ $300m bond, after the company failed to make principal payments of Rmb1.002bn ($151m) on its onshore loans. [ABSTRACT FROM AUTHOR]

JP Morgan has launched credit default swap clearing with London-based clearing house LCH, opening a line with a Nordic pension fund. [ABSTRACT FROM AUTHOR]

China Energy Reserve & Chemicals Group Co (CERCG) said on Sunday evening that it has officially defaulted on its dollar bonds, marking the third offshore default from Greater China in recent weeks. Markets participants are not stressing about it though, but are instead optimistic about a strong week for primary and secondary markets. [ABSTRACT FROM AUTHOR]

Tianqi Lithium Corp and CEFC China Energy Co were thrust into the limelight this week after their existing dollar bonds saw big movements in the secondary market — the former following an acquisition announcement and the latter because of an onshore bond default. [ABSTRACT FROM AUTHOR]

The International Swaps and Derivatives Association (ISDA) responded scathingly to attempts by market participants to “narrowly” trigger credit events that result in favourable pay-outs to buyers of credit default swaps. Costas Mourselas reports. [ABSTRACT FROM AUTHOR]

Interest rate derivatives enjoyed increased popularity this quarter as their traded notional rose 9.8% to $46.4tr year-on-year, according to a report by the International Swaps and Derivatives Association. The rise was accompanied by a 5.6% trade count increase. [ABSTRACT FROM AUTHOR]

A default from a Chinese local government financing vehicle (LGFV) is looking increasingly likely, showing how fragile the dollar debt market in the region can be. The risk is certainly there, but DCM bankers are sceptical it could cause a repricing in the offshore bond market, writes Addison Gong. [ABSTRACT FROM AUTHOR]

HSBC has demanded repayments of principal and interest totalling $220m for loans raised by troubled China Huishan Dairy Holdings, about five months after it declared an event of default on a $200m syndicated loan. [ABSTRACT FROM AUTHOR]

Three Chinese companies have been hit by difficulties that resulted in them breaching covenants on international syndicated loans. Despite the cluster of problems, bankers says this does not point to more systemic failure in China Inc. John Loh and Shruti Chaturvedi report. [ABSTRACT FROM AUTHOR]

Kaisa Group Holdings has finally struck a deal with creditors over the restructuring of its offshore debt, marking the end to one of the longest-running Asian capital markets saga in recent years. [ABSTRACT FROM AUTHOR]

Argentina is set for an emphatic return to international bond markets next week after a 15 year absence. It is set to be the most exciting turnaround story in emerging markets, said investors. But the country's capital market rebirth will depend upon triumphant deal execution, writes Oliver West. [ABSTRACT FROM AUTHOR]

A $100m syndicated loan for China Water Affairs Group has closed with over 10 banks piling in, prompting the borrower to consider doubling the size of the deal. [ABSTRACT FROM AUTHOR]

Indonesian miner Berau Coal Energy is conducting a tender offer to buy back its two outstanding dollar bonds, the company announced on November 24. [ABSTRACT FROM AUTHOR]

Risks of corporate downgrades and lower CDS volumes have pushed investors into carry strategies favouring single name entities and non-directionality. [ABSTRACT FROM AUTHOR]

Indonesia's Bumi Serpong Damai managed to price its first international on Monday but was hampered by a long past default by one of its sister companies. Bankers say the issuer could have done better in terms of pricing and size had it not been for investor concerns about the ownership risk. [ABSTRACT FROM AUTHOR]

Investors were sanguine about Kaisa Group Holdings becoming the first Chinese property company to default on its offshore default on this week, with the expected news barely creating a ripple in secondary markets. [ABSTRACT FROM AUTHOR]

Ukraine Export-Import Bank is asking bondholders to approve a three month extension to its Eurobond due April 27 and the prospect of full repayment looks bleak. [ABSTRACT FROM AUTHOR]

DTEK Energy Group, the largest privately owned energy company in Ukraine, is warning of a possible default as it attempts to exchange its $200m Eurobonds due April 28, 2015. [ABSTRACT FROM AUTHOR]

Afren, the Africa-focused oil exploration company listed on the London Stock Exchange, has obtained a second deferral from lenders on a $50m loan amortisation payment. [ABSTRACT FROM AUTHOR]

It is a truism that the credit default swap product garners more headlines when companies default or are close to triggering a credit event. Last week we saw a typical example, and it will surely be the case next week as well. [ABSTRACT FROM AUTHOR]

Indonesian pulp and paper products company Asia Pacific Resources International (April) is said to be mulling a multiple tranche fundraising of around $1bn. The size of the deal could vary depending on a greenshoe, said bankers. [ABSTRACT FROM AUTHOR]

The European Commission has proposed a further two-year exemption for pension funds from central clearing requirements for their over-the-counter derivatives transactions. [ABSTRACT FROM AUTHOR]

Rusal's hopes of obtaining a loan from international banks this year look to be fraught with worry. Chief executive Vladislav Soloviev said this week that the Russian aluminium producer might try to refinance loans from Russian state banks with international lenders to get a better rate, but several loans officials at banks in Europe believe this is unlikely. [ABSTRACT FROM AUTHOR]

HSBC is gearing up for a rise in distressed debt situations in Asia with the appointment of veteran banker Sergio Morita into the newly created role of head of sourcing, Asia Pacific. The move recognises the increased stress on Asian companies that is expected to create plenty of opportunities in special situations and distressed debt in Asia, with the downturn in commodity prices, defaults in China's property sector among factors driving activity [ABSTRACT FROM AUTHOR]