Archive for August, 2012

CDS used to help relieve bank balance sheets

CDS, once a source of contention for critics of derivatives, are now being used to help de-risk European banks’ balance sheets affected by the ongoing crisis in Europe. From the WSJ

The latest example came Monday, when a large unidentified

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Investors dial-up Nokia swaps

While Nokia’s ADR shares have had their best weekly gain in about 2 decades (rising from a low of $1.69 on July 17th, 2012 to its current level around $2.38), Bloomberg mentions how, The cost of insuring Nokia bonds using
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How Swede it is

Investors are finding more safety in everything Swedish it seems. A recent Bloomberg story pointed out that:
Credit-default swaps on five-year Swedish government bonds have rallied this month, reaching 46.3 basis points today, compared with 46.5 for the world’s largest
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