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The article analyzes the impact of the financial crisis on the exchanges. It states that exchanges and their clearing infrastructures on both sides of the Atlantic will have a heavier role in providing the price transparency and counterparty risk reduction that is seen as essential to restoring stability to the global financial system. Demand for exchange-based products and services is being stoked by regulators in Europe and the U.S. as they search for tools for mitigating risk in the largely unregulated over-the-counter (OTC) credit derivatives market.

The year 1997, expect liquid loan markets, structured deals and credit derivatives, securitization. Barring a major credit event, it looks as if syndicated loan spreads are likely to stay at current levels for the rest of 1997. The market is still awash with liquidity and, especially in the AAA and AA categories, this should keep it very much a borrowers' market. Banks are taking a harder look at the highest investment grade business which is currently being done on the tightest terms. Unless there is the prospect of a long-term profitable relationship with the borrower, the incentive to join this sort of transaction is minimal, which may cast a question mark over whether they can continue to be done so smoothly. Although asset-backed deals have been around for over a decade, last year the technique of securitization really took off in Europe and around the world. Governments around the world will continue to dispose of business interests at a rapid pace this year, transferring management or ownership of everything from game reserves to satellites into private hands. "It's going to be another hectic year," says James Sassoon, managing director and head of the global privatization team at SBC Warburg Inc. in London, England.

Intercontinental Exchange (ICE) is open to further expansion of its wireless data service the Middle East and other key jurisdictions, according to the head of ICE Global Network (IGN). Atlanta-based ICE launched its first Middle Eastern exchange, ICE Futures Abu Dhabi on March 29 along with the venue's flagship futures contract based on Murban crude oil. [Extracted from the article]

Bond insurance fails to cover all new types of bank securities Banks are employing different approaches in different countries to meet more stringent capital requirements and many new securities aren't explicitly covered by credit-default swap contracts, the method of insurance favored by bondholders. "The credit-default swap market hasn't kept up with the fast-moving changes in bank bonds", said Louis Gargour, chief investment officer of London-based LNG Capital, an alternative investment-management firm. [Extracted from the article]

The article reports on the status of the equity derivatives market in Europe in 2009. According to bankers caught up in the equity derivatives turmoil, the losses that they have sustained need to be kept in perspective, and do not bear comparison with those that were accumulated in credit derivatives. It states that many of the losses sustained in the equity derivatives market in 2008 were the by-product of unhedged positioning. It talks about the indecision of banks about their strategy in the market.

The article reports on the plan of several securities exchanges to launch central counterparty (CCP) services for clearing credit default swaps (CDS) in the U.S. and Europe in 2009. According to some market players, regulators have to approve only one of the solutions, and cited the need for standardization and simplification. It talks about a cooperation between U.S. and European agencies on regulating global clearing initiatives. It cites the influence of an increased oversight on electronic trading of credit derivatives in the U.S.

Deutsche Bank AG is dipping back into an area of the credit derivatives market in Europe that it all-but pulled out of in 2014. Deutsche Bank stopped buying and selling most credit-default swaps on individual companies in late 2014, when it cut as many as 10 credit traders in London, including index and options traders. [Extracted from the article]

The article reports on the sale of electronic credit derivative trading platform Creditex to the InterContinental Exchange (ICE) for $625 million. The merger is expected to bring the expertise of a large derivatives exchange group to the still young credit default swap (CDS) market in Europe. It is reported that the transaction will comprise $565 million of ICE common stock and $60 million of cash and will close in the third quarter of 2008. The merger is predicted to yield between $9 million and $14 million in 2009.

The article reports on the emergence of synthetic Collateralized Debt Obligation (CDO) in Europe. Calyon has been arranged a €100 million synthetic CDO to be fully managed by M&G Investment Management, which will reference corporations including long positions on 135 unequally weighted names with a 10% bucket to buy short protection on corporate names. However, the stagnant U.S. asset-backed security CDO market has been covered by another round of downgrades.

The article reports that more commercial real state collateralized debt obligation (CRE CDO) is set to take in Europe. This conditioned is happening despite the lack of available collateral needed to stimulate market growth. Christian Aufsatz, vice president at Moody's Investors Service Inc., states that CRE CDO exhibit a high degree of overlap and a low asset credit quality.

The article reports on the development of the bank Wachovia Securities LLC in extending its U.S. global rates and collateralized debt obligations (CDO) platforms in Europe. The bank made several hires both in London-based global rates group and in Germany to support its growing European commercial real estate in Europe. The initiative arises as the Europe's first CDO deals backed by commercial real estate have circulated in the market.

This article presents information on the first European transaction, Dekania Europe CDO I. The collateralized debt obligation deal reached the market in August 2005. It was arranged by investment bank Merrill Lynch & Co. Inc. for Dekania Capital Management, the deal's asset manager. So far 17 companies have taken part, but the final portfolio will involve around 29 European operating and holding insurance and banking institutions. Bank debt can comprise 12% of the portfolio. Half of the insurance companies can be from Great Britain and another 23% will be Lloyd's of London companies. The rest will come from several different jurisdictions across Europe.

Reports on innovations that are expected to fuel collateralized debt obligation (CDO) supply in Europe. Outlook for the fourth quarter of 2004; Tightening of credit spreads; Better performance and monitoring of CDO.

The article discusses the negative impact of renewed concerns on Europe's financial health and the Maiden Lane commercial mortgage-backed securities (CMBS) collateralized debt obligation on the new-issue market, leading to widespreads on two conduit deals. The benchmark 10-year, AAA-rated super senior bonds of UBSCM 2012-C1 conduit deal, were priced at swaps plus 120--five basis points wider than price guidance and five basis points wider than similar bonds than JPMCC2012-C6.

The article reports on the securitisation tender offers which were launched in the second week of June 2009 in Europe. It states that a tender offer was launched by Barclays Bank for two of its balance sheet Collateralization Loan Obligations (CLOs,) Gracechurch Corporate Loans Series 2005-1 and Gracechurch Corporate Loans Series 2007-1. On the other hand, a tender offer was launched by Rabobank for all outstanding notes from its subsidiary Obvion's Storm Dutch RMBS programme.

The article reports on credit-linked note (CLN) issuance in Europe. It states that most of the enquiries for credit-linked notes are based around notes linked to credits of highly rated names or sovereigns, with the majority for single name CLNs rather than baskets. However, there have also been some enquiries for notes linked to the iTraxx Crossover index.

The article reports that leading banks in the global league tables were able to remain in their positions as issuance volumes in the U.S. decreased while issuance in Europe slightly improved in the second quarter of 2008. In the U.S. seven underwiters issued 11 collateralized debt obligation (CDO) deals. Meanwhile, only two deals were completed in the commercial mortgage-backed securities sector. In Europe, 10 dealers completed CDO deals, while commercial and residential mortgage-backed securities were reported to post slight issuance increase.

The article reports that financial services and banking dominated the credit default swaps (CDS) market in the U.S. in 2008. The credit rating of CIT Group was downgraded by Moody's from single-A to triple-B. It is also noted that the third most active sector in the U.S. credit derivatives market was fixed line telecommunications trading. The most active single name credits in Europe were Telecom Italia and Deutsche Telekom.

The article reports on the statement from the Royal Bank of Scotland concerning the deals entering the asset-backed securities that are not publicly offered in Europe. Analysts stated that they expect Fortis Bank to have a £ billion partially-funded synthetic collateralized commodities obligation of Belgian small medium enterprises (SME) loans ready for market. The deal will be structured with six tranches of credit-linked notes beneath a super-senior Credit-Default Swap (CDS).

The article reports on the two products launched by Calyon in July 2007. Channel Capital is said to be the first credit derivative product company (CDPC) in Europe. It defines CDPCs as separately capitalized, triple-A rated, synthetic vehicles that allow investment banks to act more efficiently as counterparties for credit default swap. Another product launched by Calyon is Solys, an innovative structured product allowing institutional investors to short the credit markets on a cost free basis.

The article offers news briefs on structured credit transactions in Europe. Hanover Street Finance Ltd. issued 10 classes of rated notes, raising €484.15 million. The €300 million collateralized debt obligation (CDO) Investec CREA CDO I is expected to issue five classes of rated notes, including a €225 million triple-A tranche. Deutsche is marketing a €450 million leveraged loan collateralized loan obligation (CLO) for Oak Hill Advisors called Oak Hill ECP II.

The article offers business-related news briefs in Europe. The RBC Capital Markets Inc. decreased the number of its staff for its fixed income division in New York and Chicago, Illinois. A 7% loss of jobs in the executive position was reflected for Dresdner Kleinwort in London, England while the corporate and investment bank of the Credit Agricole Group, Calyon, declared the possible growth for its credit market and collateralized debt obligation product lines in 2007.

The article reports that Merrill Lynch has priced Taberna Europe CDO I, the second European commercial real estate collateralized debt obligation, and will be managed by Taberna Capital Management. In Taberna, the €600 million portfolio will consist of mainly real estate investment trust debt, largely subordinated debt issued by real estate operating companies.

The article offers news briefs in the financial services industry in Europe. Bear Stearns has priced Colonnade II, a £300 million collateralized debt obligation (CDO) of ABS, managed by Morgan Stanley's global proprietary credit group. Faxtor Securities is preparing a dollar dominated CDO of mezzanine ABS. UBS Global Asset Management has priced Kalmar Structured Finance, a €56 million equivalent transaction arranged by Nordea Bank.

The article reports that the Anthracite Europe 2006-1 of BlackRock Financial Management Co. obtains a well-disposed debt pricing in Europe. Anthracite is the first Commercial Real Estate (CRE) Collateralized Debt Obligation (CDO) in the continent in which dealers expect more CRE CDO transactions to emerge. Though the direct spread performance is difficult to assess, the asset class' novelty and BlackRock's good reputation seem to have enabled competitive pricing.

The article reports on the plan of BlackRock Financial Management to launch its first commercial real estate collateralized debt obligation (CDO) in Europe in November 2006. The CDO will be arranged by Morgan Stanley. Sources familiar with the deal suggested that the portfolio will consist of 60 percent sub-investment grade B notes, or the subordinated part of a commercial real estate loan.

The article reports on the extension of Wachovia Securities LLC's (WS) U.S. global rates and collateralized debt obligation platforms into Europe. WS employs many executives both within its London, England-based global rates group and in Germany to support its growing European commercial real estate initiative.

The article offers news briefs on issues related to credit default swaps. The iTraxx Europe Index traded at its low record of 26.125 basis points. The European fixed line telecommunications sector and the U.S. automobile sector are the most actively traded credits in August 2006. ICAP-Credit, the electronic credit trading platform of Icap, formed a link-up with Markit Portal.

The article focuses on the success of Citigroup in the European CDOS market. The bank hired Michael Raynes, global co-head of securitisation at Deutsche Bank, to be global head of structured credit. The hire suggests a serious commitment to the business, and that is borne out by Citigroup's progress in the European market over the last year. Its CDO business has grown impressively in both volume and breadth.

The article focuses on the status of Deutsche Bank in the European CDOS market. The market has no recognised league tables and judging relative performance is extremely difficult. The CDO group at Deutsche is a globally run business that covers cash and synthetic, static and managed products, including all trading functions including correlation and CDO trading.

The article discusses how hedge funds are changing distressed debt in Europe. U.S. hedge funds are being drawn to a growing European distressed debt market and changing the way it functions. Hedge funds poured into distressed debt in the U.S. According to a report published by Greenwich Associates, hedge funds accounted for 82% of trade volume in U.S. distressed debt and nearly 30% of U.S. sub-investment-grade bonds and credit derivatives as of February 2005. Most of the hedge funds active in distressed debt focus on trading liquid debt securities where the price has been affected by a distressed situation like a reorganization, distressed sale or bankruptcy.

The article looks at the growth of the collateralized debt obligation (CDO) market in Europe. According to the article, industry players believe that the CDO business will continue to grow as indicated by the high level of cash floating about in Europe. However, market players are concern over the potential problems of the growth of the CDO and its impact on the future of the business in Europe.

The article reports on the improvement of the iTraxx and CDX indices for junior mezzanine tranches in Europe. It cites the reasons behind the widening in the longer maturity junior mezzanine tranches of both indices. Michael Hampden-Turner, a structured credit analyst at RBS, comments on the status of the index tranche market.

Reports on the reappearance of the market value collateralized debt obligation (CDO) in Europe. Difference of the market value CDO from their par-based, cash flow counterparts; Structure of the market value CDO; Recognition of leverage assets as the only form of collateral used.

Reports on the constant proportion portfolio insurance (CPPI) deals and credit default swap (CDS) market in Europe as of August 2005. Plans of Jet Stream regarding its exposure in the CDS market; Partnership of ABN Amro with Axa Investment Managers for Axa Synergy CPPI credit fund; Information on a CDS portfolio offered by Axa Synergy.

Presents an update related to collateralised debt obligations (CDO) in Europe as of July 2005. Structure of the Dekania Europe CDO I deal arranged by Merrill Lynch for insurance companies; Investments included in the Napa Valley IV CDO of asset-backed securities launched by Société Générale; Value of a synthetic CDO priced by JP Morgan for Axa Investment Managers.

The article reports that in 2004, a flurry of collateralized debt obligations (CDOs) came into being in the U.S. Now, while they continue to keep busy in the U.S., several investment management firms are setting roots down in Europe where, they say, there are many opportunities waiting to happen. Firms such as The Carlyle Group--which has hired Mike Ramsay from Prudential Securities to build up a loans business--and The Blackstone Group Inc. are apparently looking to make their mark in the world of European CDOs. Recently, Highland Capital Management purchased ING Capital Management. And last year, Babson Capital Management acquired the CDO business of London-based Duke Street Capital Debt Management.

Presents updates on the collateralized debt obligation transactions of several companies in Europe as of January 21, 2005. AIG International; Prudential M&G; Citibank; Carlyle.

Presents news briefs on the collateralized debt obligation (CDO) sector in Europe as of January 14, 2005. Companies that are preparing its CDO and asset-backed security offerings; Efforts of CIBC to market a collateralized fund obligation; Synthetic deals to be closed by Calyon.

Presents news briefs on the collateralized debt obligation (CDO) sector in Europe as of January 14, 2005. Plan of Cairn Capital to offer its first CDO fund; Efforts of Morgan Stanley to market Arosa Funding 2005-1 for launch in February 2005; Closure of a middle-market collateralized loan obligation of CDC Ixis.

Presents information on a regular credit derivative price fixings initiative to be introduced in Europe in 2005. Benefits of regular price fixing for market liquidity and transparency; Involvement of specialist credit derivative broker Creditex and data provider Markit in the initiative.

Reports on the status of the European credit default market as of July 2004. Settlement cost of the Europe Index structured notes; Decrease in the price of protection against the Republic of Turkey in the European high yield sector; Rating of Citizens Communications deals given by Moody's and Fitch; Acquisition of Caesar's by Harrah's.

Reports on the significance of index-linked synthetic CDO structure, a credit derivatives introduced in the European marketplace for investors. Identification of the equity index from Standard & Poor's Corp.; Mismatch between the payments streams received from the collateral and CDS counterparty as well as the interest and principal payments owed to note holders; Mode of payments of Deutsche Bank.

DERIVATIVES are financial weapons of mass destruction, opined Warren Buffett, chairman of Berkshire Hathaway, in his annual letter to shareholders last week. Mr Buffett criticised opaque pricing and accounting practices that allow companies and dealers to pick numbers to suit them when valuing positions in swaps, options and other complex products whose prices are not listed on exchanges. Many financial firms, especially insurers in America and regional banks in Europe, are taking on extra risk through credit-default swaps and collateralized debt obligations, whose behavior has been less predictable than they had hoped.

Reports on the revision of credit derivative definitions by the International Swaps and Derivatives Association. Value estimations of the credit derivatives market; Impact of revisions on the restructuring of credit events in the European market; Coverage of guarantees.

Reports that credit derivatives are on the rise in European collateralized debt obligations. Trade based on the International Swaps and Derivatives Association documentation; Simplicity of transaction in the absence of transfer or sale of assets; Need for a new form of restructuring protection.