Archive for October, 2010

H&R Block CDS volatility creates tax gains (and losses) for some investors

H&R Block has been in the news for a number of things lately and credit default swaps on its subsidiary that issues debt for the firm have been very volatile.

  • Worries about the ultimate cost to H&R Block (and its
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Weekly: European telecoms make an appearance on the active list

No fewer than 4 global telecoms showed up on the 25 most active credit default swap list this week including 2 in the top 10.

Deutsche Telekom, France Telecom, Telefonica and British Telecom were all very actively traded this for …

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College Hunks Hauling Junk (and also investing)

It is refreshing to see the impact and importance of credit default swaps, particularly those of its largest company, Waste Management CDS, being showcased in the garbage industry.

The latest piece of information comes via Waste Management World, a …

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CME could create separate CDS guarantee fund to win more clearing business

Reuters reports that Chicago Mercantile Exchange managing director, Tim Doar, recently told a meeting of professionals that “We would like to find a way to broaden the rules and safeguards associated with our CDS offering, with the objective of expanding …

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ICE Link speeds up novation process

ICE Link, the subsidiary of IntercontinentalExchange (ICE) formerly called T-Zero, recently announced a new Novation Consent = Confirmation (C=C) initiative which aims to make it easier for credit default swap traders to novate trades.

Novation is defined by Duhaime’s legal

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No more non-bank credit default tranche trades

It appears that the last 2 remaining non-bank-to-non-bank credit default tranche trades were closed out during the week ended October 15, 2010. This means that a couple buy-side firms have removed their respective position in the tranche market.

A total …

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Weekly: 3 American banks break the top 10 amid mortgage foreclosure crisis

Amid concerns about the unearthed mortgage foreclosure pandemic facing the United States of America, it appears CDS investors loaded up on swaps referencing some of the largest American banks in the mortgage industry including Bank of America, JP Morgan …

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What kind of swaps does Pimco like?

Think credit default swaps are just the domain of an exclusive set of New York and London hedge funds? Think again. CDS have even entered Newport Beach, California in the public discourse of one of the largest bond mutual fund …

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Rupee CDS could begin trading “by the first week of January”

That is according to a quote from Shyamala Gopinath, deputy governor of the Reserve Bank of India (RBI) in a recent Bloomberg story.

RBI and other Indian officials are currently going through some of the feedback and comments received on …

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Credit Analysis: PIGS Banks (Part 2)

credit analysis on several European/PIGS Banks and their respective sovereign. Continued from Part 1.

Some highlights:

  • Sovereign CDS spreads are generally tighter than the banks’ with some notable exceptions including Santander & BBVA (almost 50 bps and 20
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