Archive for February, 2011

Hugh Hendry’s CDS trades

In one sentence, outspoken (and bearish) fund manager Hugh Hendry at Eclectica Asset Management is buying credit default swaps on a number of Japanese industrial corporations as a way to bet (about $2 billion) against a potential slowdown …

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Weekly: Clariant CDS bubbles higher

Swiss-based chemical maker, Clariant, saw a record amount of credit default swap activity for the week ended February 18, 2011. In the company’s second appearance on the active list this year (the first being February 18, 2011), a …

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DTCC’s new CDS data portal for regulators

Last week, the Depository Trust & Clearing Corporation (DTCC) announced the release of a new automated online credit default swap data portal for global regulators to access CDS data stored in its Warehouse Trust global repository. The announcement came in …

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Bahrain CDS above 300 bps

Bahrain CDS have been on a steady 2 week rise and reaching 18-month highs. 300 basis point levels on Bahrain have been unseen since its summer (July/August) 2009 record highs reached during Dubai’s financial troubles and …

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First CDS trades under new regulations

The first US-dollar denominated credit default swap trades that conform to new regulations being implemented under the new Dodd-Frank Act on TradeWeb earlier this month.

As mentioned in the FT,

Under Dodd -[F]rank, clearable derivatives are required to

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Weekly: Swaps of Steel

Steelmaker ArcelorMittal saw a record amount of 342 trades covering $1.4 billion in gross notional value for the week ended February 11, 2011 making it the tenth most active credit default swap. The world’s largest steel company has not seen …

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NYSE Euronext to launch new bond liquidity provider

The New York Stock Exchange may have been in the news lately for its pending Deutsche Bourse merger but previous to that announcement was another expansion by its NYSE Bonds unit into the fixed income area expected by March.…

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Barclays starts electronic CDS trading

Barclays joined Credit Suisse and UBS on the list of banks that have rolled out electronic trading systems for credit default swaps.

According to FOX Business,

Barclays’ service is being offered through its proprietary click-to-trade execution platform, BARX, through Bloomberg
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What is the profit margin on clearing CDS?

The answer would be C) 35%.

Intercontinental Exchange recently reported its fiscal 2010 financial performance and in it were a few tidbits of information related to its credit default swap business including an indication of ICE Trust’s profit margin on …

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Merrill Lynch ordered to pay out on a Japanese CDS

As reported in Reuters recently,

A New York State appeals court revived a lawsuit seeking to force Bank of America Corp’s Merrill Lynch unit to pay out on a 1.5 billion Japanese yen ($18 million) credit default swap……

In the

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