Archive for August, 2010

China first yuan swap or domestically insured corporate bond? (Part 2)

CreditLime Special Report
Aug 31, 2010

China first yuan swap or domestically insured corporate bond? (Part 2)

Continued from Part 1

Who are these insurance providers?

US-based Bloomberg, CNBC and IFR reported that the bond insurance was provided …

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Brazil negative basis turns positive

Unlike the sometimes lucrative negative basis trades that are sought after in corporate credit markets, such as the recently highlighted Tyson Foods example, negative basis’ are/have been the norm in some sovereign names at different times.

Bloomberg reported earlier …

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Credit Analysis: BHP Billiton & PotashCorp

A detailed credit analysis on two companies (BHP Billiton and Potash Corporation of Saskatchewan) currently involved in hostile takeover talks from the credit derivative perspective.

Some highlights:

  • BHP Billiton CDS currently at 106.5 bps (up +10%,+ 30%, +36% over the
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US Treasury bonds say one thing, US CDS say another

As US Treasury rates keep dropping lower and lower and talk of a bond market bubble exacerbate, one thing that is clear is that money is flowing into government debt not because of a rise in safety but likely because …

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Ireland rating down, CDS up, Jameson still happy, John (Corrigan) is not

The Standard & Poor’s credit rating agency downgraded Ireland’s credit rating one notch to from AA to AA- overnight as fears mount about the impact on public finances for supporting/bailing out the Irish banks.

Ireland began its descent down the …

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China’s first yuan swap or domestically insured corporate bond? (Part 1)

CreditLime Special Report
Aug 24, 2010

China’s first yuan swap or domestically insured corporate bond? (Part 1)

Is it an insured bond or a corporate credit default swap that was sold in China last month? That is the debate …

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New Basel Proposal could disrupt Financial CDS

A new proposal being floated by the Basel Committee (BC) aimed at preventing and dealing with future banking crises could throw a wrench in the way credit derivative markets covering financial single-names currently function.

The newly released Consultative Document on …

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Pakistan CDS on a wild monsoon ride

Pakistan CDS has been on a wild ride this week beginning the week at or just under 500 bps, rising over 600 bps on Tuesday before falling back down closer to 500 again then back up again close to 600 …

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Investors quarry Vendanta Resources CDS

Vendanta Resources, India’s largest copper mining company, saw its credit default swaps rise 116 bps to 649 bps on Monday after announcing its deal to buy as much as 60% of Indian oil company, Cairn India, for $9.6 billion.

Vendanta …

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Negative basis trade in Tyson Foods

Reuters and Credit Derivatives Research (CDR) analyst Bryan Douglass earlier today highlighted negative basis trade opportunities in the debt of meat producer, Tyson Foods.

Negative basis trades, are trades where the yield or return on a bond …

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