Big Deal? – CME Group: Options on Interest Rate Swap Futures coming - … These options on 5-Year, 7-Year, 10-Year and 30-Year Swap futures offer investment and risk managers—including asset managers, mortgage servicers, bank treasurers, money managers, and hedge funds—a vehicle for expressing views on swap rate volatility and for managing convexity exposure. Moreover, options on Swap futures replicate the European-style convention of OTC options with exercise taking place only at expiration, providing market participants with a familiar tool that has the added benefits of central counterparty clearing. – CMEGROUP

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ASF endorses securitization reform in Treasury plan – … “The securitization market is a key part of the solution to the ongoing credit and liquidity crisis and is necessary for economic growth and recovery globally,” said George Miller, executive director for the ASF, the largest advocate for the securitization industry. … – Reuters

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ZERO HEDGE TRIFECTA:  I really love this site – very high quality stuff – here are 3 great posts – BC

great repo and negative rate primer – Treasuries Still At Negative Repo Rates - posted by Tyler Durden – Lots of queries lately as to why 10 years (and other bonds on the curve) are still at markedly negative repo rates: i.e. the phenomenon of negative interest for lenders. This is an interesting topic which I will touch on again soon, especially with recently implemented 300 bps fees for delivery fails. Across The Curve has discussed this issue recently and I point to his post for a good primer. An even better primer is straight out of the New York Fed “Repurchase Agreements with Negative Interest Rates.” Recommended Sunday reading for anyone curious about the intricacies of the Treasury market. – Zero Hedge

great presentation – PIMCO Does Not Believe In Relative Value - Posted by Tyler Durden – In the accompanying presentation, it is easy to see why Bill Gross’ PIMCO is highly bullish on credit of any variety. As the table below demonstrates, taken straight out of the biggest bond fund’s May 2009 presentation “Investing for the Journey and the Destination: What it means across the Capital Structure” PIMCO doesn’t see any overvalued instruments in the credit realm: MBS, IG, EM and HY/Loans all have wonderfully green and positive metrics in the valuation column. – Zero Hedge

On The Uselessness Of LIBOR – Posted by Tyler Durden – … James Bianco of Arbor Research has some interesting comments, discussing the immediate future of LIBOR as a true predictor of the interbank lending market, especially in light of the BBA’s decision to expand the 16 bank LIBOR reporting syndicate as even it has realized that market participants have lost faith in the impartiality and objectivity of LIBOR. … has charts and papers – Zero Hedge

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Fed plans repo markets revamp – By Henny Sender and Michael Mackenzie – The US Federal Reserve is considering dramatic changes to the giant repurchase – or repo – markets where banks around the world raise overnight dollar loans.  The plans include creating a utility to replace the Wall Street banks that handle transactions, people familiar with the matter say. – FT.com
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Derivatives Get Second Look From US Congress That Didn’t Act – By Dawn Kopecki and Matthew Leising -  Congress will take a second shot at the derivatives industry after its decision nine years ago to forgo regulations led to a $592 trillion market that brought some financial firms to their knees. – Bloomberg

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Bond yields will wither if green shoots stop growing – by David Pett – FP Treading Desk