First auction of 2012

Earlier this week, the first settlement auction for the year was held with little fanfare for a relatively less popular name in the loan credit default swap market. Only 3 dealers participated in the LCDS auction for Seat Pagine Gialle SpA (Credit Suisse, JP Morgan Chase, and Morgan Stanley). The final price was set at 45 with a net open interest of EUR 13.649 million to sell. Readers might remember that it was just over a month ago when dealers held the auction for Seat Pagine Gialle’s regular corporate CDS – an auction which resulted in a final price of 10. The first auction was held after Seat defaulted on its debt in November but the most recent auction was held after the company missed its promised payment of senior debt in December and is still trying to restructure with another plan due out by the end of this month.