Archive for July, 2011

CDS-related lawsuits always seem to be a failure in US

Lawsuits related to or involving credit default swaps, either directly or indirectly, seem to be doomed to failure in the USA with the latest being a lawsuit against Goldman Sachs related to losses sustained in the Timberwolf CDO (see prospectus

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The Role of Clearinghouses and Central Counterparties (CCP) in CDS Markets – Part 2

The Role of Clearinghouses and Central Counterparties (CCP) in CDS Markets – Part 2

The AIG Problem

Another problem highlighted during the AIG fallout (where AIG couldn’t pay its CDS counterparties the mark-to-market amounts they were due) was that instead …

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The Role of Clearinghouses and Central Counterparties (CCP) in CDS Markets – Part 1

The Role of Clearinghouses  and Central Counterparties (CCP) in CDS Markets – Part 1

Central clearinghouses have been frequently proposed as a solution to fix the CDS markets or prevent a future CDS market crisis. But what exactly does a …

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USA Sovereign CDS rising

Credit default swaps protecting the sovereign debt of the United States of America have seen increasing interest over the last little while as investors try to both speculate and hedge the current uncertainty over a possible American government default or …

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Dynegy CDS powers up

As summarized by the WSJ,

The Houston-based independent power producer had said Sunday it wants to tweak its organizational structure by dropping its coal- and gas-fired power plants into separate subsidiaries, putting in place $1.7 billion of new senior

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Italy CDS reaches high

Italy CDS reached a new high of around 300 bps but has settled back down to around 282 bps according to Markit, as investors fret over the disastrous thought of the Eurozone’s third-largest economy (after Germany, France – and …

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Large American bank CDS prices

An update on some of the large American bank CDS prices which are rising again on continued concerns over European sovereign debt exposures (in addition to a plethora of other worries):

Citigroup 147 bps

Bank of America 169 bps

Goldman …

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Italy orders transparency in short sales

Italy’s market regulator, Consorb, ordered short sellers to reveal short positions greater than 0.2% of a company’s capital but stopped short of an outright ban as the spread between Italy 10-year bonds and German bunds hit 300 bps and Italy’s …

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Irish Life & Permanent credit event declared

It has been a busy summer so far for ISDA’s determinations committee with the latest credit event declared: this time on Irish Life & Permanent PLC.

The ISDA EMEA DC unanimously ruled a restructuring credit event had occurred on the …

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Citius, Altius, Fortius for Greek CDS

Citius, Altius, Fortius (Latin for Faster, Higher, Stronger) and a term often associated with the Olympic Games which originated in Olympia, Greece appears to also be an appropriate term to use for Greek credit default swaps too. With Greek CDS …

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