Archive for June, 2010

Mythology across the Aegean Sea as told by CDS

It was perhaps many thousands of years ago when King Aegeus of of Athens threw himself into the water after (mistakenly) believing Theseus, his heir to the throne, had died in battle trying to kill the Minotaur, a half-man …

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Market chews on Tobacco CDS

Cigarette makers led by the Marlboro Man in America scored a huge win after the US Supreme Court refused to hear an appeal by the US government against a lower court ruling that the government could not take $280 billion …

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Wall Street’s Toy Story 3: Hasbro’s Buyout

As kids across the world crowd into packed cinemas to catch a showing of Disney and Pixar’s latest installment of the beloved Toy Story 3-D animation franchise, big kids (known by some on the street as possibly being investors) were …

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Greek CDS hits record high 1131 bps today

Credit default swaps protecting the debt of Greece rose to a new record and the second day (so far) trading above the 10% level. Greek CDS had previously hit successive highs of 1127 bps yesterday and 970 bps on Wednesday …

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Inter-dealer CDS brokers fined by Finra

Bloomberg is reporting that several inter-dealer brokers of credit default swaps have agreed to pay the Financial Industry Regulatory Authority (Finra) $4.3 million in fines to settle a case against them which accuses them of trying to fix fees on …

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BP credit default swaps are in 117 CSOs that could lose money

Moody’s recently came out with a report saying that a BP bankruptcy could cause losses in 117 different Collateralized Synthetic Obligations (CSOs).

CSO’s are basically just a Collaterlized Debt Obligation (CDO) with CDS in them instead of mortgages …

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“Chinese version of CDS will be launched”

The mixed signals being given about the introduction of credit default swaps in China continue today with new reports out this morning indicating that the country is planning their introduction of their own version of CDS soon.

Both Reuters and …

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The role of Counterparty Valuation Adjustments (CVA’s) in rising sovereign CDS levels

A recent report published by the Bank of England (BoE) cites “increased hedging by CVA desks has been an influential factor behind these [rising European sovereign CDS price] moves.”

A counter party valuation adjustment (CVA), or sometimes interchangeably called a …

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First bond yields, now Illinois CDS overtake California

We began the week reporting how bond yields on Illinois State general obligation debt had overtaken similar bond yields on California State debt so it probably isn’t a surprise to end the week reporting how Illinois credit default swap prices …

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N97 – Nokia swap price or smartphone?

Well that really depends upon the day. Today the answer would be both.

Nokia warned of weaker than expected sales and profits yesterday amid heightened competition in higher end markets such as smartphones. According to analysts estimates from Reuters, for …

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