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Derivatives

Derivatives are financial instruments that derive from an underlying asset such as a commodity, bond or currency. SCI’s derivatives coverage focuses on the structuring and trading of derivatives relating to securitisation and structured credit. The instruments covered are primarily: credit default swaps (CDS) and options; correlation trading through index tranches; total return swaps on credit and loan indices and baskets; bespoke tranches; and other new and unusual synthetic structures.

  • Index ingenuity

    Credit derivatives strategy finds value in capital constraints

    With doveish central bank policy in the US and Europe having a tightening effect on yields across a...

    News Analysis    3 October 2019
  • Nascent stages

    CRT mezz investor base needs time to develop

    The pace of growth of the risk transfer market is likely to be tied to the development of the synthe...

    News    3 October 2019
  • Problem solving

    Credit derivative hedges mooted in a deteriorating environment

    The end of the credit cycle and fears over global geopolitical and natural events are driving Europe...

    News Analysis    3 October 2019
  • STS synthetics framework unveiled

    EBA publishes landmark consultation

    The EBA has published its long-awaited discussion paper on its proposals for an STS framework for sy...

    News Analysis    25 September 2019
  • Competitive boost

    QMP expiration levels playing field

    The US Treasury’s plan to reform the country’s housing system is expected to lev...

    News    13 September 2019
  • Risk transfer round-up - 12 September

    CRT sector developments and deal news

    Intesa Sanpaolo is rumoured to be prepping for 4Q19 two capital relief trades that reference respect...

    News    12 September 2019
  • Risk profile

    Basel 4 impact to vary based on business model

    The EBA last month published its advice on the implementation of Basel 4 in the EU, with its impact...

    News Analysis    12 September 2019
  • Going concern?

    Synthetics could help address UTP burden

    Synthetic securitisation is being put forward as one way of proactively addressing the unlikely-to-p...

    News Analysis    5 September 2019
  • Regulatory boost

    Italian SRT issuance picks up

    Italian capital relief trades are experiencing a strong pick-up in issuance this year as regulatory...

    News Analysis    30 August 2019
  • Esoteric opportunities

    Structured solutions to address corporate risk transfer needs

    The newly-formed CAC Specialty (SCI 21 August) is seeking to capitalise on the convergence of the in...

    News    30 August 2019
  • Risk transfer round-up - 28 August

    CRT sector developments and deal news

    Credit Suisse has called two transactions from its Magnolia Finance V programme. The transactions we...

    News    28 August 2019
  • Counterintuitive results

    EBA consultation incentivises unfunded SRT format

    The EBA’s consultation on the determination of the weighted average maturity of a securiti...

    News Analysis    23 August 2019
  • Risk transfer round-up - 16 August

    CRT sector developments and deal news

    UBI Banca is rumoured to be prepping an SME and corporate SRT for 3Q19. The alleged transaction is r...

    News    16 August 2019
  • Senior mezz eyed

    CRT issuers target asset managers

    Banks are targeting asset managers for the senior mezzanine tranches of dual-tranche capital relief...

    News Analysis    9 August 2019
  • Risk transfer round-up - 9 August

    CRT sector developments and deal news

    BNP Paribas is rumoured to be prepping a corporate capital relief trade for 3Q19. The lender&rsq...

    News    9 August 2019
  • Dual-tranche deal finalised

    Standard Chartered targets wide distribution

    Standard Chartered has completed a dual-tranche capital relief trade that references an undisclosed...

    News    2 August 2019
  • Landmark SRTs inked

    BP Bari completes capital relief trades

    Banca Popolare di Bari has completed two capital relief trades that reference respectively a &eu...

    News    2 August 2019
  • COSME tapped

    SME risk-sharing agreement signed

    Italian national promotional bank Cassa Depositi e Prestiti (CDP) has tapped the EU's COSME...

    News    1 August 2019
  • BMO SRT launched

    BMO expands mid-market exposure

    Bank of Montreal (BMO) has completed a five-year financial guarantee that references US and Canadian...

    News    26 July 2019
  • Benchmark SRT inked

    Bank of Scotland completes unusual synthetic UK RMBS

    Bank of Scotland has launched its first post-crisis synthetic UK RMBS. Dubbed Syon Securities 2019,...

    News Analysis    25 July 2019
  • Risk transfer round-up - 24 July

    CRT sector developments and deal news

    Banca Popolare dell ‘Alto Adige is believed to be readying a capital relief trade that is...

    News    24 July 2019