Lehman's New Twist In Credit Derivatives

French, Jeff
July 2005
Investment Dealers' Digest;7/25/2005, Vol. 71 Issue 29, p8
Trade Publication
The article reports that, in the latest development in the rapidly evolving credit derivatives market, a couple of dealers have begun trading default swaps on preferred stocks. The product also seems a natural fit for a synthetic collateralized debt obligation which would likely provide a huge boost to the blossoming market. Early participants, from the buyside include hedge funds, money managers, a couple of insurers, bank dealer desks and preferred funds. Convertible arbitrage accounts have also been active, using the product to hedge convertible preferreds.


Related Articles

  • Hedge Fund Regulation via Basel III.  // Vanderbilt Journal of Transnational Law;Mar2011, Vol. 44 Issue 2, p389 

    No abstract available.

  • Are Some Euro Second Liens Underpriced Mezz In Disguise? K. K. // Bank Loan Report;5/19/2005, Vol. 20 Issue 19, p1 

    The article reports that European issuers have increasingly opted for second lien loans, with such issuance totaling some euro 2.3 billion during the last eighteen months as of May 2005. There are a few structural differences between the two debt products, say second lien loans and mezzanine....

  • So hedge funds like volatility? Anson, Mark // Pensions & Investments;10/27/2008, Vol. 36 Issue 22, p12 

    The article discusses the problems of hedge fund managers in the volatile market. It highlights the risk involved in the hedge fund arbitrage strategies. These strategies bet that the prices of different but similar securities will converge over time. Furthermore, since the profit from a...

  • Credit Derivatives To Get Riskier In '06. O'Leary, Christopher // High Yield Report;12/5/2005, Vol. 16 Issue 46, p1 

    The article presents information on the financial performance of the credit derivatives market as of December 2005. It is reported that the market has grown so exponentially that its notional value of $5.3 trillion now tops the $5 trillion of the entire U.S. corporate bond market. Hedge funds...

  • CDS Disputes Rise Amid Slew of Structured Finance Litigation. G. S. // Asset Securitization Report;11/3/2008, Vol. 8 Issue 42, p14 

    The article explores litigations regarding credit default swap (CDS) disputes. Legal disagreements over CDS can be classified as counterparty disputes and shareholder litigation. It focuses on the involvement of hedge funds on the cases as well as notes the common grounds on these lawsuits. An...

  • Where are the Trends? International Trading and Hedge Funds in Foreign Exchange Markets. YuChang Huang // Journal of International Management Studies (1993-1034);Feb2014, Vol. 9 Issue 1, p68 

    Hedge funds are, without doubt, one of the least transparent types of financial assets, and numerous studies have debated the persistence of their performance. Trend-following strategies are mainly used in managed futures funds. However, their performance seems entirely different before and...

  • Magnetar Responds to Our April Story -- And Our Response. Eisinger, Jesse; Bernstein, Jake // Pro Publica;10/24/2010, p26 

    The article reports on Squared, a collateralized debt obligation from Magnetar Capital LLC, which was arranged by J.P. Morgan & Co. Inc. Magnetar is a hedge fund based in Evanston, Illinois. It is reported that Magnetar played a key role in creating nearly 30 collateralized debt obligations,...

  • Credit Derivatives -- Hot & Evolving Fast. Iyer, Savita // Bank Loan Report;9/13/2004, Vol. 19 Issue 35, p1 

    Reports on the status of the credit derivatives market in the United States. Expansion of gross sold outstanding including cash collateralized debt obligations; Single-name credit default swaps; Increase in the role played by hedge funds; Increase in importance of correlation trading.

  • Hedge Funds Take Advantage Of Distressed CDO Buying Opportunities. O'Connor, Colleen Marie // High Yield Report;5/30/2005, Vol. 16 Issue 21, p3 

    Reports on the opportunity for hedge funds to buy distressed assets due to chaos in the synthetic collateralized debt obligations. Decline in the market value of equity because of the contortion on the market; Observation of the entry of new investors to snatch up the cheapened equity portions;...


Read the Article


Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics