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Credit markets

LCH.Clearnet bid sparks conflict-of-interest debate

A proposal by a consortium of major derivatives dealers to acquire London-based clearing house LCH.Clearnet has led to suggestions that banks becoming intimately involved in the clearing process could present a conflict of interest.

Trichet: Eurozone CCP will help improve oversight

European Central Bank president Jean-Claude Trichet backed a central counterparty (CCP) for clearing credit default swap (CDS) trades in the eurozone today, in a speech that also called for banker compensation to be linked to avoiding excessive leverage.

Financial CDSs widen worldwide

Fading investor confidence in the stability of financial institutions has caused the cost of credit protection on banks across the globe to increase over the past 24 hours.

Banks agree to EU CCP for clearing CDS

Nine major dealers agreed to use an EU central counterparty (CCP) for clearing trades in credit default swaps (CDSs) today, paving the way for talks to resume with the European Commission.

CDSs on Fortis tighten

The cost of credit protection on Dutch and Belgian bank Fortis narrowed this morning, after Fortis chairman Jozef de Mey and BNP Paribas chief executive Baudoin Prot told media the takeover deal between the two banks is still alive.

CDSs on Irish banks widen further

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.

CDSs widen on UK banks

Credit derivatives referencing UK banks continued to widen this morning, following a week in which Lloyds TSB announced it will absorb a £10 billion loss due to its merger with HBOS.

CDS spreads on financials widen again

The cost of credit protection on US and European financial institutions rose in early trading today, despite falling on Wednesday on news of a plan by the US treasury to purchase $1 trillion worth of illiquid assets.

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