Fixed income and credit trading hedge fund managers are watching closely for any impact the planned introduction of new global standards for credit derivatives might have on their business.
This vexed subject was mooted once again at a meeting of the International Swaps & Derivatives Association in New York at the end of April. But this time a compromise appears to have been reached on documentation standards, which may allow for the convergence between US and European markets.
Under the new proposals, credit derivatives would be subject to a global definition of guarantees. This would eliminate the existing differences