Archive for the ‘External News’ Category

Relative value in global bank CDS

As highlighted in Bloomberg, The debt of banks is trading at the biggest discount to the broader corporate bond market since the depths of the funding squeeze in November as Europe’s sovereign crisis again threatens to rattle global financial

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CDS futures continue to languish

The introduction of CDS futures (essentially envisioned as a standardized futures contract on a popular CDS index like the CDX to begin with) has yet to make any significant progress on its path to reality but does anyone really care?

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Quanto CDS from boom to bust


The International Financing Review (IFR) reported about a week ago that it appears the boom in quanto credit default swaps – specialized contracts used to manage or hedge foreign currency risk associated with sovereign CDS – is over and now

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New banking swap indices launched

Index Administrator, Standard & Poor’s, and International Swaps & Derivatives Assocations, ISDA, recently launched a new pair of credit default swap indices to track bank swaps and by extension counterparty risk. The 2 new indices are the S&P/ISDA CDS U.S.

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Swaps have YRC driving off the cliff again

It has been 2 years since some CDS and bond investors in YRC Worldwide last pondered bankruptcy as they tried to hold out for a better payback during the company’s highly publicized campaign against derivatives. Now, as the company seems

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ICE Clear Credit starts portfolio margining

Intercontinental Exchange’s central clearinghouse (ICE Clear Credit) for credit default swaps won approval over a month ago to be able to apply portfolio margining across its bank members. Portfolio margining will allow allowed banks to be able to

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New Muni CDS Protocol upcoming deadline

There’s only a week left until the updated protocol for municipal credit default swaps goes into effect (April 3, 2012). As taken from the ISDA release,

The purpose of the Protocol is to make similar changes to US Municipal

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ERC Ireland credit event declared

This has been the week of credit events for sure. Yet another credit event has been declared – this time a failure-to-pay credit event in the case of ERC Ireland Finance. An auction to settle ERC Ireland’s credit default

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CDS doomsday?

An editorial in the Reuters Blog by Felix Salmon about a Greek default’s potential impact on future CDS markets.…

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Turkey CDS

As reported in Bloomberg,

Turkish companies have a record 307 billion liras ($174 billion) of debt maturing this year just as their domestic borrowing costs rise to the highest in almost three years and HSBC Holdings Plc predicts foreign

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