Archive for the ‘External News’ Category

CDS ETF’s have arrived

Deutsche Bank’s db x-trackers program has launched new ETF’s tied to the Markit CDX North America Investment Grade and High Yield credit default swap indices. They

Some of the pending tickers as listed by Bloomberg include:

· XLIG –


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Debt downs India’s airlines

The drama thats unfolding in India’s airline sector and has nearly taken one casualty, in Kingfisher Airlines earlier default and grounding, is causing turbulence for the rest of that country’s airlines as well. While Kingfisher is already down but not …

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CME sues to protect its swap data

A new lawsuit by the CME to protect is trade data from having to be sent to DTCC or other centralized swap data repositories  could threaten or slow down the drive to increased transparency in derivative markets.

From Reuters,…

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North American CDS back at 3 month high

As mentioned in Businessweek,

The Markit CDX North America Investment Grade Index, a credit-default swaps benchmark that investors use to hedge against losses or to speculate on creditworthiness, rose 4.3 basis points to a mid-price of 104.5 basis points

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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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Japan CDS at mid-year

Japan’s sovereign CDS has tightened by about 34% from 142 bps at the in December 2011  to 94 bps in June according to the WSJ,
but market participants say the tightening spreads suggest that the often-cited gauge for the
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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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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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define security-based swap dealer

The SEC is following through on proposals from last year to define a security-based swap dealer. If its latest definitions go into law, this is what you might find if you were to ask google to define it.

security-based swap

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