Archive for June, 2012

CDS perks the interest of regulators

According to the WSJ,
DTCC said regulators submitted 360 searches in May, the most recent month for which data is available, compared with 37 searches in the same month last year. In April, the number of searches rose to
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Spain soaring

Spain’s sovereign CDS and the nation’s public banks CDS are at or near new highs as investors fret about Spain’s possible downgrade to junk status. Moody’s already downgraded many Spanish banks and Spain currently sits one notch above junk at …
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Default risk outside of Europe

While European countries seem to be hogging the highly coveted “whose gonna default next” spotlight, recently CNBC highlighted another non-euro country that could beat other European countries to the mark. Belize, the country in question, was recently downgraded by Moody’s …

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Collateral (Call) Damage – no pun intended

All those margin and collateral calls that JP Morgan Chase likely faced on its massive “London Whale” CDS trades likely had further reaching effects on several other related derivatives. Despite total CDS volumes having fallen to lower and …
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Spanish bank bailout hasn’t triggered CDS (yet)

So far, market participants are saying (based on what they know so far) that the recent 100 billion euro Spanish bank “bailout” is unlikely to trigger credit default swaps linked to the country’s sovereign debt.
As summarized in IFR,…
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ResCap CDS auction

CDS traders held their settlement auction yesterday for Residential Capital LLC – the mortgage subsidiary of Ally Financial (which itself is the successor to the old GMAC). At the end, traders decided the final price of 17.625.…

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Morgan Stanley CDS above 400

Morgan Stanley credit default swaps are reaching levels not seen since the credit crisis of years past and currently trade above 400 bps. While all the bulge bracket American banks (and most other banks in general) are seeing their CDS …

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Face of the market: CBS

CBS credit default swaps rose the most this year, or 13 bps, to 118 bps yesterday after investors worry about the effect a potential sale of the company’s outdoor advertising and billboard business could have on the current or successor …
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Australia corps rising

Australian corporate credit default swap prices rose to a 6-month high according to Bloomberg:
The Markit iTraxx Australia index jumped 10 basis points to 212 basis points as of 10:15 a.m. in Sydney, according to Westpac Banking Corp. (WBC)
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Houghton Mifflin Auction

Houghton Mifflin Harcourt Publishing, which filed for bankruptcy last month, in order to

strengthen the Company financially so we can continue to invest in our business and ensure we are well positioned for the future. This plan, which is supported

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