Dynegy CDS auction results

Final price: 71.25

Wal-Mart CDS unchanged after busy weekend

It doesn’t appear that investors had the same appetite to shop for Wal-Mart securities and derivatives as they did to buy goods from its stores after the weekend despite some early indications of another positive performance this year and an added bonus – receiving initial permission to fully enter the world’s largest democracy and pursue other avenues of growth.

Voluntary haircut to blame for spike in Euro CDS

CDS spreads on other European sovereigns like France, Belgium and the Netherlands jumped after doubts about their efficacy as a hedge came into question after moves to avoid triggering Greek CDS.

Dim sum bond yields could indicate mispricings

Some companies are finding it cheaper to issue debt in Hong Kong.

“CDS market is a bit like a broken thermometer”

Do you agree?

BIS consultative paper on central counterparties

The BIS will be accepting feedback on their “Capitalisation of bank exposures to central counterparties” until this Friday.

Unicredit CDS widens

Unicredit CDS is one of the previous week’s biggest wideners on Italy’s fiscal problems.

5 banks write 97% of all CDS

Enough said

When sharing risk actually increases risk

Please pick the sentence which logically follows the statements provided:

All bankers are greedy people. All greedy people do not like to share good things and will only share bad things.

(a) Greed is bad.
(b) Greed is good.
(c) Where is Gordon Gekko when you need him.
(d) Bankers do not like to share good things and will only share bad things.
(e) Everything you see on TV is fiction so you should not believe it.

~

Risk sharing, through hedging and other offsetting activities, has long been viewed as a way to reduce risk and an integral part of proper risk management – but is there a point at which too much sharing or hedging is bad?

iTraxx Sen Financials at new highs

A nice summary by Financial News of the current state of European banks – quantified with the iTraxx Senior Financials CDS index.