Archive for March, 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 …

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California: The Hell-enic State of America

Today, California took a page from the Greek playbook in going after credit default swap players in the midst of its own financial problems.

The State Treasurer Bill Lockyer, sent letters to the biggest banks, Bank of America Merrill …

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New European CDS clearing service launched amid other threats of a ban

Despite growing pan-European calls for a limited or even outright ban on CDS on the continent, LCH Clearnet’s Paris division just launched a new credit default swap clearing service that just cleared its first trade today.

The launch is …

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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. Bloomberg cited the rumoured

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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 Aktiengesellschaft, announced details of an upcoming secondary share offering. While the intention to sell shares

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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).

The ‘final price’ refers to the recovery value on the credit default swap contract or …

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LBO rumours cause heightened CDS prices

Some of the recent increases in CDS activity that CreditLime has previously identified, such as in the case of Lubrizol, is being collectively attributed to speculation about the possibility of some companies being taken over in leveraged buyouts (LBOs).…

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Who will end up making money off the run-up in Greek CDS? (Part 6) – The Greeks

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 …

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As Europe flees the swaps, Asia embraces them

Bloomberg reported last week that the the major administrator of credit default swap indices, Markit, was planning to launch a new sovereign CDS index tracking the swaps of Asian countries and the South Pacific. The new index will reportedly be …

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MTR (and KCRC) – a possible hybrid model for railway companies that also exposes it to more risk

CreditLime CDS Watch
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 …

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