Autos still most active CDS in US and Europe

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.

Broker GFI Group reports that auto manufacturers were the most active names traded in both the US and Europe in June, the fourth month in a row in which the sector has led the market. Second and third in the US were auto parts, also affected by the downgrades and a March profit warning from GM, and financial services. Meanwhile, in Europe, auto manufacturers, banks and fixed line telecoms were the most active sectors.

The most active individual CDSs in the US were GM financing arm GMAC, GM itself and Ford Motor Credit - all downgraded - recently, and Delphi and Lear, two parts suppliers. DaimlerChrysler led the field in Europe, followed by France Telecom, Telecom Italia and Tele Danmark, with Heidelberg Cement fifth.

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