Natural hedges and holistic analysis help auto giant cut hedging costs
First quarter call
The cost of credit protection on Irish banks rose steeply this morning as the European Commission warned Ireland's budgetary deficit could widen to 9.5% of GDP by the end of 2009.
Credit managers are expanding strategies playing on changes in correlation and relative value, which were calamitous for the hedging strategies of some dealers and investors during July and August.
Credit default swaps (CDS) referenced to financial services firms, banks and telecom companies were among the most active in April trading, according to a monthly list produced by GFI, a New York-based interdealer broker.
The motor industry, fixed-line communications and financial services were all heavily traded in the credit default swaps (CDS) market in November, according to New York-based interdealer broker GFI.
Automobiles in the US and telecom companies in Europe were again the busiest sectors of the credit default swap market in October, according to a report from the US interdealer broker GFI.
Interdealer broker GFI has released its monthly report on the most actively traded US, European and Asian names in the credit default swap (CDS) market in September.
Fitch Ratings is aiming to introduce a new service for evaluating market risk in synthetic collateralised debt obligations (CDOs) in the next three months, which it will announce tomorrow. The rating agency will offer a mark-to-model market risk service…
The revelation of sizeable hedge fund losses in the structured credit market in May have prompted renewed calls from investors and regulators in the US and Europe for greater disclosure in the hedge fund sector.
The effect of Standard and Poor's downgrading the credit ratings of debt owned by Ford and General Motors two months ago is still washing through the credit default swap (CDS) market.
A wave of frenzied trading on Thursday afternoon was triggered by Standard and Poor’s downgrading of General Motors and Ford Motor, and their financing units, to junk status, driving credit spreads to record highs.
Options pricing systems vendor SuperDerivatives has launched an upgrade of its SD-FX system, according to RiskNews’ sister publication, Dealing With Technology .
The Bank of Israel, Israel’s central bank, has adopted UK-based technology vendor SuperDerivatives' foreign exchange option pricing and analytics system.
Caterpillar, the US-based manufacturer of construction machinery, has bought the SuperDerivatives system for pricing foreign exchange options.
Credit default swap spreads have tightened again in Europe in the second half of this week, but markets have remained thin and subdued, say London-based credit derivatives traders.
Growing confidence that the US could achieve a swift victory in the pending war in Iraq promoted an increase in sellers active in the credit default swap (CDS) market. Traders said spreads were now contracting in line with the equity market rally.
The downgrade of debt issued by troubled Italian auto manufacturer Fiat to junk status sent the cost of its credit protection wider by about 125 basis points to 875/975bp. And poor US February auto sales released mid-week also prompted the widening on…
Credit default swap spreads for European corporates started to widen during the later part of this week. Fears of a terrorist attack in London or elsewhere, coupled with generally weak equity markets, started to reduce confidence in the market, traders…
Trading in the European credit default swap market this week was brisk, with traders stating they had seen good liquidity in the market and narrowing spreads following the holiday break.
Credit protection on the debt of ABB is no longer available even on a client-only basis, major dealers said today.