Credit markets
CDS spreads tighten on financials
The cost of credit protection on US financials continued to fall in European trading today, while sentiment was also positive towards European banks.
CDS: Levels stabilise afer last week's widening
Credit default swap 5-year mid-levels for structured products issuers (May 15)
CDS spreads tighten on US banks
The cost of credit protection on US financials fell in European trading today.
US to regulate OTC derivatives
Daily news headlines
CDS: Sentiment slips on poor corporate news and jobs data
Credit default swap 5-year mid-levels for structured products issuers (May 14)
Insurer CDS spreads tighten on Tarp promise
Market sentiment improved significantly towards US insurers after the Treasury granted permission to a select number of firms to raise billions of dollars through the government's Troubled Asset Relief Programme (Tarp).
CDSs on European and US banks continue to widen
The cost of credit protection on financial institutions increased today across Europe and the US. The move came after the Bank of England's quarterly inflation report showed UK GDP growth was slower than expected in the first quarter of 2009 yesterday,…
Morgan Stanley fined over $120m mismark
The UK Financial Services Authority has fined Morgan Stanley £1.4 million for failing to supervise one of its prop traders, allowing him to mismark a portfolio of illiquid credit products by $120 million last year.
CDS: Bank levels stay flat
Credit default swap 5-year mid-levels for structured products issuers (May 12)
European CDS dealers closer to restructuring solution
European derivatives dealers have agreed on a provisional framework to integrate restructuring as a credit event into the auction process for the cash settlement of credit default swaps (CDSs), taking the market a step closer to central clearing.
Geithner calls for law change to force OTC derivatives clearing
The US Treasury called upon Congress yesterday to amend the Commodities Exchange Act (CEA) to compel the "clearing of all standardised over-the-counter derivatives through regulated central counterparties".
Auction finds General Growth Properties LCDS worth 44.25%
An auction held on May 13 determined a final settlement value of 44.25 cents on the dollar for loan-only credit default swaps (LCDSs) referencing Chicago-based shopping mall owner General Growth Properties; the company opted to restructure its debt under…
BoE inflation report pushes CDSs on European financials wider
The cost of credit protection on European financials increased this morning following the release of the Bank of England's quarterly inflation report. The report conceded UK GDP growth had been slower than expected in the first quarter of 2009, and…
CDS: Wells Fargo bounces back after stress test
Credit default swap 5-year mid-levels for structured products issuers (May 8 & May 11)
Ambac makes $1.539bn derivatives gain
Ambac reported a massive $1.539 billion mark-to-market gain on credit default swaps (CDSs) in the first quarter – an upswing largely due to its own deteriorating financial condition.
CDSs on US financials narrow
Market sentiment towards US banks improved today, with the cost of credit protection on six of the nation's largest financial institutions falling. The move came on the same day Bank of America (BoA) was reported to have raised $7.3 billion from selling…
Bowater worth 15%, according to credit derivatives auction
An auction held on May 12 determined a final settlement value of 15% for credit default swaps (CDSs) referencing North American newsprint manufacturer Bowater, which filed for Chapter 11 bankruptcy on April 16.
CDS: Narrowing excludes major European players
Credit default swap 5-year mid-levels for structured products issuers (Friday May 8)
CDSs on US banks widen
The cost of credit protection on US banks increased this morning, having fallen - in some cases by as much as 50 basis points - on Friday after the announcement of the US government's stress-test results last week.
CDS: Pressure eases on Citigroup as narrowing continues
Credit default swap 5-year mid-levels for structured products issuers (Thursday May 7)
Stress test results boost CDSs on financials
In early US trading on Friday, the cost of credit protection on financial institutions fell markedly following yesterday's publication of stress test results by the US government. In contrast to earlier pessimistic predictions - some of which had…
AIG trims loss in Q1
Insurance giant AIG reported a net loss in the first quarter of 2009 of $4.35 billion. While undoubtedly a poor result, it at least marked something of an improvement from its fourth-quarter 2008 result when it reported a loss of $61.7 billion - the…
Primus explores new CDPC model
Primus Guaranty, the Bermuda-based credit derivatives product company (CDPC) and asset manager, is looking into the possibility of setting up a new entity to sell credit protection, but unlike its existing business model, the new venture would post…
CDSs on financials tighten on positive results
The cost of credit protection on European banks fell this morning ahead of the US government releasing the results of its stress tests on 19 US banks, helped by positive interim reports from UK banks.