Credit markets
Dealers vote for third LCDX auction
The International Swaps and Derivatives Association will publish terms for a cash-settlement auction on loan credit default swaps (LCDSs) referencing Hawaiian Telecom over the coming weeks.
Ice storm
Iceland
Interbank confidence falls in the US, rises in Europe
The cost of dollar lending in the interbank market rose 17bp overnight, but the cost of euro and sterling borrowing was down marginally today.
CDS market mixed for eurozone and US financials
Credit default swaps (CDS) referencing UK and European financials faced varied market sentiment in early trading today.
Overnight euro Libor unaffected by news of €200 billion EU support
Overnight euro Libor remained unchanged from yesterday at 2.9%, despite the announcement a €200 billion stimulus package to shore up the struggling economies of European Union (EU) member states.
CDS market more liquid in times of stress - Fitch
The credit default swap (CDS) market becomes more liquid during periods of market stress, according to research conducted by Fitch Solutions, a valuation and product development division of Fitch Ratings.
CDS spreads down on European and US financials
UK and European banks saw improved market sentiment this morning, while the cost of credit protection on US financial institutions fell yesterday.
Treasury urged to sell £100 billion in RMBS guarantees
A senior advisor to the Chancellor has called for the UK Treasury to guarantee £100 billion in residential mortgage-backed securities (RMBS) over the next two years in order to revitalise the UK mortgage market.
Primus downgrade raises questions over CDPC model
Under threat of delisting from the New York Stock Exchange, Primus Financial Products, a leading credit derivatives product company (CDPC), has started buying back $25 million of its own stock.
US sovereign CDSs rise as financials face mixed market
Credit default swap (CDS) spreads on eurozone and US financials experienced mixed market sentiment in early trading today and before market close yesterday, while CDSs referencing US sovereign debt rose by 5.5 basis points today.
Interbank markets stabilise despite 'unprecedented' volatility
Volatility in the US equity market is at near-record levels, but the interbank market remained stable today.
Sovereign CDSs up for UK and US
Credit default swap (CDS) spreads on UK and US sovereign debt hit record highs today, while CDSs on eurozone and US financials experienced mixed market sentiment.
Dollar borrowing costs up
Despite the announcement of the bailout of US bank Citigroup over the weekend, the interbank lending market is still seen as risky.
Fed opens $800 billion war chest to aid securitisation recovery
The Federal Reserve Bank of New York has unveiled ambitious proposals to purchase up to $800 billion of agency mortgage-backed securities (MBS) and extend credit to holders of cash asset-backed securities (ABS) in an effort to prop up the securitisation…
Eurozone CDS spreads tighten as US spreads widen
UK and European banks faced declining market sentiment in trading this morning, while the cost of credit protection on US financial institutions rose at the end of last week.
Dollar Libor shoots up overnight
Overnight dollar lending rates rose today following the news that US banking giant Citi will receive additional government assistance.
Dinallo backtracks on regulating CDSs
Daily news headlines
US CDSs continue to soar as eurozone banks stabilise
The cost of credit protection on US financial institutions continued to rise steeply yesterday as world equity markets suffered significant losses.
Dinallo backtracks on regulating CDSs
New York State insurance superintendent Eric Dinallo shelved plans to bring a large slice of the credit default swap (CDS) market under the purview of the New York State Insurance Department (NYSID) during a US congressional committee hearing on November…
Contenders queue up for Tarp funds
An increasing number of organisations are applying for the $250 billion Capital Purchase Program (CPP), part of the US government's $700 billion Troubled Asset Relief Program (Tarp).
Second credit-event auction to be held on LCDS
London-based data provider Markit has announced it will hold a credit-event auction on Ontario-based door manufacturer Masonite International, to settle loan credit default swap (LCDS) trades referencing the company.