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February 28, 2010
Sovereign CDS – the Chicken or the Egg?
So did the Hellas financial and debt crisis come first and then Sovereign CDS merely gobbled up the news (and shot upwards) in reaction or was it the rise in interest and level of Greek CDS that precipitated the crisis in Greece. The answer may be found by first answering and then applying the same logic used to answer the long standing question between which came first – the chicken or the egg.
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February 26, 2010
Indian banks CDS wider while the stocks are up after budget speech
Indian Finance Minister Pranab Mukherjee released his new 2010-2011 budget today which among many other things promises the equivalent of US$3.58 billion (1US$=Rs.46.135) in state funds to recapitalize the public sector banks and an unspecified amount to recapitalize the regional rural banks.
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February 25, 2010
Korean Banks’ default swaps up in Seoul trading today
Credit default swaps on the major Korean banks appear to mostly be up in unison with the shares of those banks falling in Seoul trading today. The CDS rise has been led by the biggest of them KB Financial Group (holding company of Kookmin Bank) which is the subject of preliminary rumours about possible accounting errors although they issued a statement in Korea in response to them denying such things.
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February 24, 2010
Who will end up making money off the run-up in Greek CDS? (Part 4)
In the first two parts to winners in the “Greece trade,” we quoted sources that identified banks and several hedge funds as possible benefactors from the run-up in Greek CDS. Now Bloomberg/BusinessWeek added another hedge fund to the mix while other formerly accused funds and their founders spoke out publicly denying their involvement in the trade.
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February 22, 2010
Canadian National Railways CDS in locomotion
Their trains may not go as fast as the bobsleds and sleds and their conductors may not be as healthy or fit as the athletes and lugers currently winning gold at the Olympics this week but they are still worth as good as gold or even more to investors. CN Railway was one of the CDS names seeing increased interest today – not just in CDS markets but in equity options markets as well.
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February 22, 2010
Werner Langen’s ‘own initiative’ report to European Commission proposes to ban dealers from owning any share of European CDS central counterparties
A German report (English translation expected to be released today) by Deustscheland politician Werner Langen calls for preventing dealers from owning any share in European CDS central counterparties (CCPs). As any free-market capitalist would expect, the report caused quite a commotion in financial and banking circles with lobbyists no doubt released in force to dent the possible influential impact of such a occurrence.
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February 21, 2010
CDS spreads around the world
Graphical representations of CDS prices from countries around the world
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February 20, 2010
Who will end up making money off the run-up in Greek CDS? (Part 3)
In the second update/answer to this question, several buy-side names are being mentioned by European officials and reported in financial media.
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February 19, 2010
$3 billion increase (and then fall) in European Financial CDS Index
While out of reach from the ordinary retail investor’s realm of choices, we highlight a significant trade that occurred in the iTraxx Europe Senior Financials 8 Index over the last couple weeks that may be of interest to investors in the European banking sector.
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February 18, 2010
Who will end up making money off the run-up in Greek CDS? (Part 2)
In the first update/answer to this question, one (probably obvious) group is the major banks and broker-dealers.
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