Archive for October, 2011

Poland CDS at 217 bps

Polish credit default swaps had their biggest drop in 5 months according to Bloomberg which reported Poland CDS trading at 217 bps on October 28, 2011.

Despite the absolute drop, however, Polish default swaps have widened along with the rest …

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New Fitch Bank Credit Model released

Fitch has recently launched a new bank credit model which provides implied credit default swap spreads on 9,500 banks around the world and may be yet another tool used by investors to trade banks.

Taken from the release:

Fitch

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CDS future uncertain?

Another editorial in the FT discussing discussing doomsday for the credit default swap markets if Greek effectively defaults (forces haircuts to existing debtholders) without triggering an official credit event that requires Greek CDS protection holders to be made whole and …

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Marubeni CDS elevating

Japanese conglomerate trading house Marubeni CDS is on the rise on fears of how an economic slowdown could affect its future business. As mentioned in Bloomberg,

The cost to insure debt of Marubeni Corp. (8002), Japan’s biggest grain trader, is

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Mortgage insurers rise

Arizona’s insurance regulators recently took over the 3rd largest private mortgage insurer, PMI Group, which according to the WSJ had been paying “about $1.5 billion a year in claims to reimburse lenders and mortgage investors such as Fannie Mae,

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ICE Trust to clear EM CDS

Earlier last week, the SEC gave formal approval to ICE Trust to allow the central clearinghouse to begin clearing emerging market sovereign credit default swaps. Specifically the SEC gave approval to allow ICE to clear CDS referencing Argentinean, Brazilian, Mexican …

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PIMCO going long Japanese banks

As banks and other related financial companies see investors fleeing their securities, Pimco appears to be finding one parcel of value within the sector in Japan finding Japanese banks somewhat separated from the European financial problems and not as reliant …

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EU moves closer to banning naked sovereign CDS

European countries as a group have moved closer to implementing a temporary ban on naked sovereign credit default swaps despite the objections of certain members such as Britain.

As summarized in Bloomberg,

Under the deal, traders may be prevented

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South Africa credit default swaps

Here is a recent quick profile on the illiquid South African CDS.

In early September, South Africa’s CDSs were trading at 157, up 31 basis points from early August, according to market data group CMA.

In comparison, the Markit iTraxx …

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American bank CDS widening

From the WSJ……

While Morgan Stanley’s stock price is a few pennies higher today, bucking the rest of the sector and the broader market, the cost of insuring against a Morgan Stanley default in the CDS market is up …

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