Archive for November, 2010

EU countries vs. US states

In chart form, courtesy of The Economist

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Some of the first Chinese CDS (credit risk mitigation) trades

As reported earlier this month, China has officially introduced their own version of onshore renminbi/yuan credit default swaps called credit risk mitigation tools. At the time of introduction, China Everbright was quoted offering 5-year protection on AAA-rated bonds …

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Weekly: European banks active

Amid the race for some European countries, like Ireland, to restore confidence in their domestic financial markets and banking systems, fixed income investors appear to be hedging their bets with credit default swaps on the sovereign CDS and single-name …

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Korean CDS heading north

It was less than a year ago when South Korea credit default swaps had reached new highs around 170 bps after tensions escalated amid reports that North Korea was responsible for downing a warship.

Since then, Korean CDS has been …

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Norway is safest sovereign CDS, but where would Canada rank?

Norway, with a 10.3% of GDP budget surplus and $505 billion wealth fund, is the world’s safest sovereign as measured by credit default spreads.

According to Bloomberg, Norway CDS is at 21.5 bps compared to traditional ‘safe-haven sovereigns’ like …

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American P&C Insurer CDS on the rise after spike up in munis

The tax-exempt municipal bond market is a cold, cold world right now for issuers and taxpayers,” said Tom Dresslar, a spokesman for Treasurer Bill Lockyer.

A bear market in US municipal bond markets due to excess supply is …

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“CDS spreads can be volatile and prone to false positives”

“CDS spreads can be volatile and prone to false positives”

That is the title of a letter from Robert J. Grossman, Group Managing Director and Martin Hansen, Senior Director, both from Fitch Ratings in New York, back to the editors …

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CDS Sprinting upward

Sprint Nextel credit default swaps reached new 6-month highs over the last week rising about 13.4 bps on Wednesday and another 7.6 bps on Friday to 376.6 bps. The swaps are feeling the tertiary effects of WiMax 4G wireless operator …

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CDS e-trading begins

Credit Suisse and Bloomberg recently issued a press release announcing the beginning of electronic trading of credit default swaps via Bloomberg. In what could potentially lead to even more liquidity and volume in the indices covered by the e-trading initiative, …

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Weekly: Spain climbs atop

Spain captured the title of most active CDS with 200 trades totaling over $3.6 billion for the week ending November 5, 2010. The top 6 were all sovereigns (Spain, France, Italy, Brazil, Ireland, UK) with at least $2 billion …

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