Credit markets
Ambac to commute $3.5 billion in CDO exposure
Ambac Financial announced on Wednesday that it has arranged a deal with counterparties to close out exposure to four collateralised debt obligations (CDOs) with a cash settlement of $1 billion.
Libor untouched by market turbulence
Interbank confidence has shown no signs of falling today even as global equity markets have plummeted.
US CDS spreads soar, eurozone banks trade wider
The cost of credit protection on US financial institutions rocketed yesterday, while UK and European banks experienced declining market sentiment in early trading today.
EUA allowance auction goes live today
Four million European Union Emission allowances (EUAs) will be up for sale today marking a turning point in EU Emissions Trading Scheme history.
Forex experts: no need for central clearing house
The foreign exchange markets are unlikely to follow the credit default swaps (CDS) market by establishing central counterparties in the near future.
Interbank confidence continues to rise
The perceived level of counterparty risk in the market continued to fall today, shown by a drop in the Ted spread and Libor.
Eurozone and US bank CDS spreads widen
UK and European financial institutions faced declining market sentiment in early trading today, while the cost of credit protection on US banks continued to rise.
UK CDSs still wide
UK and European financial institutions continued to face mixed market sentiment in early trading today, while the cost of credit protection on US banks began to rise.
Dollar Libor falls further
Interbank lending confidence rose today, marked by a 0.17 percentage point fall in three-month dollar Libor.
CDS clearing house to miss November 30 deadline
The November 30 target for central clearing of index credit default swap (CDS) trades set by a consortium of industry associations and investment banks is unlikely to be met, sources within the Federal Reserve Bank of New York have said.
G-20 backs derivatives reform
The Group of 20, which contains the world's leading developed and emerging economies, backed derivatives reform proposals in a summit hosted by US president George Bush in Washington, DC on Saturday, November 15.
G-20 proposals fail to lift interbank confidence
The proposals of world leaders to stabilise financial markets had little significant impact on the interbank market, with the Ted spread and Libor figures remaining at similar levels to before the weekend.
CDS spreads unstable on eurozone banks
UK and European banks faced mixed market sentiment in early trading today, while the cost of credit protection on US financial institutions had fallen by the end of last week.
Singapore investors set to lose all in Pinnacle Notes
Investors in Singapore who bought Pinnacle Performance Notes Series 9 and 10, structured products arranged by Morgan Stanley, are set to lose their entire investment after a mandatory redemption event occurred. The total issue size of the Pinnacle Notes…
Freddie Mac posts heavy losses in Q3
Battered by the ailing residential real estate market, Freddie Mac reported a $25.3 billion loss in the third quarter of 2008 and requested a $13.8 billion capital injection from the US Treasury.
Dollar Libor and Ted climb again
Dollar Libor and the Ted spread, which tracks the difference between three-month dollar Libor and Treasury bills, were up today as confidence in the US interbank lending market dipped again.
CDS spreads widen on UK banks
The cost of credit protection on UK banks continued to increase today, while US and European financial institutions faced mixed market sentiment.
Outstanding notional on CDSs drops for first time
The Bank for International Settlements (BIS) today released statistics for the over-the-counter derivatives market, which revealed that, although the overall market continues to grow, the outstanding notional on credit default swaps has declined.
Dollar Libor up after Tarp priorities change
Dollar Libor was up today following US Treasury secretary Hank Paulson's admission yesterday that the Troubled Asset Relief Programme (Tarp) will not be used to buy illiquid mortgage-backed securities.
European and US CDS spreads widen
The cost of credit protection on European banks continued to increase in early trading today, as market sentiment towards US financial institutions began to decline.
Paulson: buying MBSs no longer Tarp priority
Treasury secretary Hank Paulson closed the door to systematic US government purchases of illiquid mortgage-backed securities under its $700 billion Troubled Asset Relief Programme (Tarp), during a briefing in Washington, DC today.
UK Libor unmoved by recession news
The Bank of England (BoE)'s predictions of continued economic downturn failed to move the sterling interbank markets today.
European CDSs continue to climb
The cost of credit protection on European banks increased in early trading today, while market sentiment towards US financial institutions remained favourable.
Fannie Mae and AIG pummelled in Q3
This week, both Fannie Mae and AIG reported steep losses in the third quarter of this year.