The US Securities and Exchange Commission on Tuesday brought its first case of insider trading involving credit default swaps, accusing a bond salesman of passing confidential information to a hedge fund manager that resulted in an instant profit of $1.2m.
In a civil complaint filed in New York, the SEC alleged that a bond salesman for Deutsche Bank, which was working on a high-yield bond issue for VNU, tipped off a former portfolio manager at Millennium Partners about changes in the Dutch publishing company’s debt offering in July 2006.
