Credit default swap (CDS) trading activity in the US focused on the financial sector in October, according to a release by New York-based broker GFI Group.
The most active names were Merrill Lynch, Lehman Brothers, Bear Stearns and Morgan Stanley, the broker said. The news comes after rumours were confirmed that Merrill had a larger than expected market exposure to the subprime mortgage sector. The bank announced $8.4 billion of writedowns on these securities on October 24, prompting the resignation of its chief executive officer, Stan O'Neal, on October 30.
Also high on the list was troubled mortgage broker Countrywide Home Loans, which was third on the most-active list for the US.
Europe, by contrast, was dominated by telecom names from Italy, Germany, UK, Spain and France.
In the sovereign sector, emerging market issuers held sway, with Turkey, the Philippines, Ukraine and Russia topping the list.
More on Credit Derivatives
Clearing credit hub closes, with Markit citing disappointing Sef volumes
UBS in Australia sold off CDS portfolio in fixed income scale-back
Fears relationship between credit indexes and constituents becoming more tenuous
A new product could smoothe the gap between capital and accounting rules
Sign up for Risk.net email alerts
Sponsored webinar: IBM Risk Analytics
Nominated for two technology awards
Nominated for post trade technology award
Sponsored webinar: Collateral and counterparty tracking
There are no comments submitted yet. Do you have an interesting opinion? Then be the first to post a comment.