derivatives

The VIX, or volatility index, sunk 15% to its lowest level in three months yesterday as European leaders announced plans to alleviate the debt crisis.

Standard and Poor's (S&P) has received notice from the Securities and Exchange Commission (SEC) recommending a lawsuit be brought against it over a mortgage-backed security it rated in 2007.

Threadneedle is to alter its managed funds' investment policy by allowing managers to make more defensive plays and invest more heavily in its long/short offerings.

Franklin Templeton Investments has launched a global multi-asset product which makes use of the group's multi-manager capabilities and has the option to hedge markets on the downside.

The IMA has called upon the European Commission and the US Treasury to abandon proposals which will force fund managers to comply with derivative rulings from different jurisdictions depending on their investor base.

Ministers from Brazil, Russia, India and China are calling for stricter regulation of derivative markets as volatile commodity prices pose a threat to financial stability.

IS LONGEVITY THE NEW INNOVATIVE ASSET CLASS?

Swiss & Global Asset Management has expanded its range with the launch of the Julius Baer Absolute Return Europe Equity fund.

COMMENT

Warren Buffett's Berkshire Hathaway saw its second-quarter profit fall 40% as derivative bets on stock indexes declined during the global equity downturn.