Auctions held for Tribune and Ecuador CDSs

Auctions to cash-settle credit derivatives trades on defaulting entities continued through January, with at least eight more planned as Risk went to press. They come amid expectations of higher corporate defaults and lower recovery rates - two trends that are expected to intensify over the coming year, analysts say.

In particular, an auction to cash-settle credit default swaps (CDSs) and loan credit default swaps (LCDSs) linked to Chicago-based media company Tribune on January 6 produced an outc