Archive for September, 2010

Weekly: Brazil, JP Morgan were the most active sovereign and corporate CDS

Brazil once again topped the most active list with over $5 billion of credit default swaps, measured by gross notional value, traded during the week ended September 24, 2010.

According to the latest data provided by DTCC to the …

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Boston Generating LCDS auction results

On September 21, 2010, swap dealers held another auction to determine a value on loan credit default swaps (LCDS) referencing loans made to Boston Generating LLC. The auction resulted in a final price of 96.75 with a net open interest …

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When ratings get politicized (Part 1)

The Securities and Exchange Commission denied Chinese credit rating agency, Dagong Global Credit Rating Company, the chance to become a nationally recognized statistical rating organization (NRSRO) in America and have its ratings officially used as benchmarks in …

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China says it will begin CDS trading this year

China plans to introduce onshore renminbi credit default swaps by the end of the year according to a Bloomberg report quoting Shi Wenchao, secretary general of the Chinese regulator National Association of Financial Market Institutional Investors (NAFMII), in New York …

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CBOE trying to re-launch credit default options

The Chicago Board Options Exchange (CBOE) is trying its hand again at launching a product, similar in theory but slightly different in name and structure to the credit default swap, called a credit default option.

According to Bloomberg

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Municipal Market CDS – ♪ Somebody call 9-1-1…Fire burning in the muni market ♬ (Part 3)

Part 3: The Swaps is continued from Part 2: The Problems

The CDS reaction

According to Otis Casey at Markit in a DerivativesWeek report (before news of the Harrisburg state bailout was known),

“Some market participants have noted that
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♪ Somebody call 9-1-1…Fire burning in the muni market ♬ (Part 2)

Part 2: The Problems is continued from Part 1: The Background and followed by Part 3: The Swaps

A real act of generosity or a mirage

The city of Harrisburg may have avoided the fate of Jefferson County, …

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Credit Analysis: H&R Block

A detailed credit analysis on tax prep firm H&R Block.

Some highlights…

  • H&R Block CDS has more than doubled over the summer while its peer BBB-rated Financials have more or less remained steady.
  • In a previous study conducted by the
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Sallie Mae keep falling

The CDS that is.

Citigroup, on Friday, officially agreed to sell its student loan business, Student Loan Corp (STU), to Discover Financial Services (DFS) and SLM Corp (Sallie Mae) as it continues to shed assets strengthen its balance sheet.

Sallie

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Ireland swaps reach another high

In what seems to be a weekly event now, Ireland credit default swaps keep rising, and hit another new high today of around 428 bps to 433 bps depending on sources. The country’s sovereign CDS has risen about 8% this …

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