Credit default swaps
Breath of Liffe
Amid fierce competition and regulatory scrutiny, the combined initiative by derivatives exchange Liffe and clearing house LCH.Clearnet for clearing credit default swaps was launched on December 22. Will the two companies have a first-mover advantage? By…
US agriculture committee plans to ban naked CDSs
Daily news headlines
Mixed morning in CDS market
Market sentiment was varied in European trading this morning across industry sectors, including financials.
US agriculture committee plans to ban naked CDSs
The US House of Representatives Committee on Agriculture has published a draft bill seeking to limit the holding of credit default swap (CDS) contracts to market participants owning the bonds of the reference entity in question.
CDSs widen on European auto industry
The cost of credit protection on European auto manufacturers rose in early European trading today, reversing gains made yesterday, while Japanese corporates continued to suffer.
CDSs tighten on European auto industry
The cost of credit protection on European auto manufacturers fell this morning, while rising to record highs on Japanese corporates.
European financials fare better in CDS market
The cost of credit protection fell on European financials and Spanish commodity players in this morning's trading.
Mixed market sentiment for financials
The cost of credit protection fell on European financials and rose on Middle Eastern banks in this morning's trading.
Clearing single-name CDSs may prove uneconomical
High margin requirements may make central clearing of single-name credit default swaps (CDS) impossibly expensive, according to one clearing specialist.
CDSs widen on European insurers
The cost of credit protection on European insurance and reinsurance companies rose in this morning's trading.
Euro Libor falls on ECB rate cut
Three month euro Libor dropped 20bp over the week to 2.45% today from 2.65% on Monday, January 12, following Thursday's 0.5% cut in interest rates by the European Central Bank, while sterling and dollar Libor remained stable.
CDSs tighten on financials and widen on sovereigns
In early European trading spreads on US and European financials tightened, while Middle Eastern and European sovereigns widened.
CDSs widen on Australia and tighten on financials
Spreads on Australian financials and Asian telecommunication companies widened in European trading this morning, while banks were trading tighter in the US and Europe.
CDSs on eurozone sovereigns widen
The cost of credit protection on eurozone sovereigns widened in European trading this morning, while in the US, spreads on Citi ballooned.
The next regulatory era
Market turmoil and political pressure are forcing the US CFTC to consider implementing new derivatives regulation or face potentially draconian rules imposed by Congress, write Gregory Mocek and Athena Velie
CDSs on European banks widen
The cost of credit protection on European financials and southeast Asian sovereigns widened in early trading today.
CDSs tighten on insurers
The cost of credit protection on insurance firms continued to fall in early trading today, while spreads widened on eastern European sovereigns.
CDSs tighten on insurance and pharmaceutical firms
The cost of credit protection on insurance and pharmaceutical firms fell in early trading today, while spreads on financials and Scandinavian sovereigns widened.
CDSs tighten on automakers, sovereigns
The cost of credit protection on automakers fell in early trading today, despite dramatic drops in December sales figures.
CDS spreads tighten on aerospace and defence firms
The cost of credit protection on a number of aerospace and defence firms fell today, as the industry continued to outperform the broader market.
CDS spreads tighten as markets rally
The cost of credit protection on financial institutions and sovereign debt across Europe and Asia dropped in early trading this morning as equity markets continued to recover.
Portal combat
The first central clearing houses for credit default swaps were expected to start business at the beginning of December, but hold-ups in regulatory approval delayed the launch in the US. With four ventures now due to take off within months of each other…
CDS spreads on automakers widen after bail-out rejected
The cost of credit protection on US and European car manufacturers rocketed in early European trading today following the US Senate's rejection of a $14 billion rescue package for the US auto industry.