Four fund managers launched Hong Kong’s first batch of leveraged and inverse exchange-traded funds tracking local indices last week, as asset managers seek to capitalise on investor interest in these products.
China has allowed foreign institutions to hedge currency risks on their onshore bond investments in the domestic market, removing a major barrier to overseas buyers of renminbi bonds.
A last-minute softening of the March 1 deadline for uncleared swaps margin offered a lifeline to counterparties, with over 90% of credit agreements yet to be updated, but hazy guidance has raised questions about the extent of the relief.
Europe’s repo market may be entering a “new normal” as a scarcity of high-quality liquid assets and leverage ratio constraints drive extreme volatility in year-end short-term funding rates, the International Capital Market Association has warned.
Amundi has become the first European buyside client to begin clearing credit default swaps through CDSClear, LCH’s Paris-based clearinghouse.
Troubled retailer Neiman Marcus is considering an outright sale of the company, but that would be likely to prove extremely costly unless bond or equity holders take steep losses.
There could be a light at the end of the tunnel for European lenders waiting to issue billions in loss-absorbing debt as rulemakers ramp up the pressure to accelerate the requisite legislation.