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March 31, 2010
Mystery solved surrounding single-name RMBS CDS
Over 3 months after CreditLime first identified the significant and unexplained volume change that occurred in the CDS of single-name residential mortgage-backed securities (RMBS ), the reason for such change has been revealed – and the answer never required any in-depth analysis or quantitative analysis.
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March 30, 2010
California: The Hell-enic State of America
Today, California took a page from the Greek playbook in going after credit default swap players in its efforts to deflect blame and perhaps attention to its own financial problems. The State Treasurer Bill Lockyer, sent letters to Bank of America Merrill Lynch, Barclays, Citigroup, Goldman Sachs, JPMorgan Chase and Morgan Stanley asking for more information about their roles in the market for California credit default swaps.
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March 30, 2010
New European CDS clearing service launched amid other threats of a ban
LCH Clearnet Paris just launched a new credit default swap clearing service which cleared its first trade today giving France a leg up in the race to gain market share in the growing European derivatives clearing business.
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March 27, 2010
IKB Deutsche Industriebank CDS sink after rumoured sale
German small and medium enterprise lender IKB Deutsche Industriebank saw one of Friday’s biggest CDS price declines with its swaps falling about 60 bps, or almost 20%, from 320 bps to 260 bps by the close on rumours of a sale.
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March 26, 2010
CDS have Porsche’s 911 in reverse
Credit default swaps on Porsche Automobil Holding company are being quoted around 119 basis points (or 9-11 in reverse) after its new takeover parent, Volkswagen, announced details of an upcoming secondary share offering.
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March 26, 2010
Aiful becomes Japan’s first CDS auction settlement
Consumer finance and non-bank financial company, Aiful, had its credit default swap auction settlement yesterday. The auction resulted in a final price of ¥33.875 (yen).
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March 25, 2010
LBO rumours cause heightened CDS prices
Some of the recent increases in CDS activity occurring in the market right now in names like Lubrizol, Lexmark and US Cellular is being attributed to leveraged buyout speculation.
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March 24, 2010
Who will end up making money off the run-up in Greek CDS? (Part 6) – The Greeks
When you have a problem, what better way to work your way out of it than hedging your own (or related) failure. That appears to have been one of the methods employed by the Greek government owned TT Hellenic Postbank (Greek Postal Savings Bank) who were clearly – and possibly ironically – one of the smarter ones in the (eastern european) room last year. If only Portuguese, Italian, Irish and Spanish commercial banks were that smart – or maybe they were but we just have not heard about it yet).
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March 23, 2010
As Europe flees the swaps, Asia embraces them
A new Sovereign credit default swap index covering Asia and the South Pacific is reportedly in the works called the iTraxx SovX Asia
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March 22, 2010
MTR (and KCRC) – a possible hybrid model for railway companies that also exposes it to more risk
Hong Kong’s largest railway and subway company, Mass Transit Railway (MTR) and its subsidiary Kowloon Canton Railway Company (KCRC) are some of the tightest credit default swap names in the corporate market. MTR and KCRC are also one of Hong Kong’s largest property owners and managers. Both trade fairly close to each other at around 30 basis points and both have seen a resurgence in interest and confidence having declined about 15 basis points, or 33%, from their mid-February highs. When investors think MTR, however, they may not always realize that the company is becoming as much of a real-estate and property driven business as it is a traditional public transportation concern.
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