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Bank-run fund derivatives platforms hit records
JP Morgan’s Nexus has seen balances double, while AUM on UBS’s Neo have tripled
Dealers warm to SOFR swaptions but buy side lags
Rate accounted for nearly half of new notional last week, but operational issues slow end-user uptake
Bank FX teams eye slice of crypto derivatives action
Business heads increasingly confident that trading will reside in their patch
Latest
Quotes
Bespoke ESG indexes are more difficult to hedge because there is no market in volatility or dividends for those indices
Trading source at one major dealer
People started getting out [of steepeners] and then realised the exit door got smaller because many had similar positions
Thomas Pluta, global head of linear rates trading at JP Morgan
For corporate credit investors, it makes sense to switch some of your bond exposures into CDS
Sean Boland, head of corporate credit at Cheyne Capital
Editor's Choice
Losing their hedge: why so many UK energy suppliers went bust
Hedging strategies were powerless to protect firms from runaway energy price rises
Big Figure
Bond exodus
Liquidity in Treasuries saw a sharp deterioration on February 25, with bid/offer spreads across the whole curve tripling. Belly flies such as 2/5/10s cheapened over 17bp, seven times greater than in a typical session. This had a knock-on effect on off-the-run Treasuries. The head of rates at a US buy-side firm says one popularly traded deep off-the-run 30-year bond that regularly trades two ticks wide blew out to 12-13 ticks wide on February 25.
Read the full articleRisk Management
Litigation threats seen delaying SEC climate disclosure rules
Efforts to demonstrate materiality of exposures to investment decision-making is taking longer than expected, say lawyers
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Comment
A defence against the next convexity crunch
Hedge funds and the rebound in collateral velocity
Our Take
Blame to spare in UK energy supplier debacle
OTC derivatives clearing: no turning back