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Peter Duenas-Brckovich is co-head of global flow credit trading at Nomura in London. He works in the global credit products group, where the flow business covers areas such as high grade, high yield, loans, credit default swaps, emerging market credit, distressed and securitized products. He spoke to Managing Editor Rob McGlinchey on topics including regulation, transparency and the state of the CDS market post-Greece credit event.
Peter Duenas-Brckovich
Peter Duenas-Brckovich is co-head of global flow credit trading at Nomura in London. He works in the global credit products group, where the flow business covers areas such as high grade, high yield, loans, credit default swaps, emerging market credit, distressed and securitized products. He spoke to Managing Editor Rob McGlinchey on topics including regulation, transparency and the state of the CDS market post-Greece credit event.
RM: How significant was the success of the Greek CDS auction in terms of fostering greater participation in the credit derivatives market?
PD: The restructuring event in Greece was very important in that it gave the market a much needed boost in confidence. Before the Greece restructuring event, the big if was whether or not the sovereign CDS contract would perform should a credit event take place. The fact that the restructuring happened and CDS contracts performed as expected was a big step forward.
One of the more positive developments it is worthwhile highlighting is that many of the players that around March 2011 had stopped trading sovereign CDS because of intense regulatory pressure, have recently returned to the product. In particular, an increasing number of those players have started to trade the core names...