Posted by news on
July 30, 2010
New South Korean CDS Index in the works
Bloomberg previously reported that Korea Financial Investment Association (KOFIA) was planning to introduce a new credit default swap index covering South Korean single-name corporates.
Read More »Posted by news on
July 29, 2010
Indian banks also accessing US capital markets
While most of the international banking news has revolved around the European Bank stress tests and recent rush of IPO’s of Chinese banks including Agricultural Bank of China and Everbright Bank, what has gone somewhat unnoticed is the concurrent rush (met with overwhelming demand) of Indian banks tapping America’s fixed income markets. India’s largest bank, State Bank of India (SBI) issued its first US-dollar denominated private placement on Friday after selling US$1 billion in 5-year senior unsecured bonds. The offering follows a similar 144A/Reg-S US$500 million 5.5 year offering by similarly-rated private sector bank ICICI Bank a couple weeks earlier.
Read More »Posted by news on
July 28, 2010
Collateralizing Credit Default Swaps
As the credit default swap market is an institutional-only market that requires margin-type accounts to take advantage of the benefits of leverage inherent in the contract, a vast majority (measured by number of participants – not necessarily by amount of money) of investors including retail investors and long-only institutional investors are often unable to participate in this market. The solution for these investors to bypass regulations or restrictions and enter the market is often found in what is called a credit-linked note.
Read More »Posted by news on
July 27, 2010
USA faces its first credit rating downgrade
It wasn’t Moody’s, it wasn’t S&P and it wasn’t Fitch. So who actually had the guts to downgrade the world’s largest economy?
Read More »Posted by news on
July 26, 2010
Euro Bank CDS little changed right after EU stress test results
The day after the EU released the results of its European bank stress tests, credit default swap markets showed little reaction with maybe a slight tightening bias. Keep in mind though that the results were released after European markets were closed and as a result only American markets have actually had a chance to fully digest the results. European markets can begin trading the news today.
Read More »Posted by news on
July 23, 2010
CDS trumps the SEC again in the boxing enforcement ring
As most investors were focused and drowned in all the hype surrounding the SEC’s latest claimed “victory” in its $550 million settlement with Goldman Sachs on charges that the bank omitted information and misled investors during the marketing of its ABACUS 2007-AC1 synthetic CDO, a landmark case that had been dismissed just a couple weeks prior involving the SEC and the credit default swap industry got barely a notice.
Read More »Posted by news on
July 22, 2010
Truvo Subsidiary CDS buyers recover 97% in CDS auction
Last week, CDS traders held the CDS settlement auction which set the final cash recovery value of Truvo Subsidiary debt at $3 (per $100 face value).
Read More »Posted by news on
July 21, 2010
लगे रहो सुब्बारावभाई (Keep going Subbarao): Rupee Credit Default Swaps (Part 3)
Part 3 of the report discussing the introduction of Rupee-denominated onshore credit default swaps to India
Read More »Posted by news on
July 20, 2010
CDS Traders play the IGT slot machines
Slot machine maker International Game Technology credit default swaps were active last week rising from around 140 bps early in the week to 160 bps by mid-week and finally closing on Friday near the 190 bps level.
Read More »Posted by news on
July 19, 2010
Goldman CDS slightly lower after SEC settlement
Two business days after Goldman Sachs’ settlement with the SEC on civil charges and Goldman Sachs credit default swaps are trading about 12 bps below where they were before the public announcement.
Read More »
