Credit markets
CDS spreads tighten further
The cost of credit protection on European and US banks narrowed this morning, as market sentiment improved on the announcement the Federal Reserve will cut the federal funds rate to 1%, its lowest level since 2004.
Dollar Libor leads the way down after Fed rate cut
Libor rates fell across the board today, as stock markets in Europe and Asia continued to pick up and the US Federal Reserve announced a 50 basis point rate cut.
Bank CDS spreads tighten
The cost of credit protection on European banks narrowed this morning, as market sentiment rebounded after last week’s equity market plunge.
Three-month Libor rates fall as stock markets climb
Interbank lending continued to ease today as European and Asian equity markets showed further signs of recovery.
Market recovery boosts interbank lending
Recovering Asian and European stock markets increased confidence in interbank lending today.
CDS spreads tighten as markets recover
The cost of credit protection has fallen as the world’s equity markets begin to recover from a volatile week of crashes prompted by fears of a global recession.
CDS spreads widen after stock markets crash
Following a volatile week of crashes across the world’s equity markets and fears of a global recession, the cost of credit protection on financials has risen further.
US Treasury considering allowing insurers, auto-makers to access Tarp
The US Treasury is considering allowing non-banking institutions such as insurers and auto-makers to access federal funds under the government’s $700 billion bailout package, a senior Treasury official has confirmed.
Interbank markets unmoved as Asian markets plummet
The collapse of stock markets in Hong Kong and Tokyo failed to shock the rest of the world today, with interbank rates remaining roughly level this morning.
Rating agencies "sold their souls"
The heads of the major rating agencies faced public humiliation this week, as hearings in the US Congress blamed them for the oversights and mis-estimates behind the credit crisis.
Congress: US needs regulatory overhaul
At a US congressional hearing of the committee of oversight and government reform on October 23, speakers called for far-reaching regulatory reforms. These included demands for greater scrutiny of derivatives, increased capital charges on securitised…
Ted spread moves up
The Ted spread and overnight borrowing costs were up today as the interbank lending markets began to reflect poor economic news.
Market turmoil forces CDSs wider
Fears of recession and volatile market conditions drove up the cost of protection on banks across European in early trading today.
Goldman cuts 10% of workforce
Goldman Sachs is slashing 10% of its global workforce as recent changes to market conditions put strains on its business practice.
End of the line for CPDOs
Analysts say the demise of Constant Proportion Debt Obligations (CPDOs) now seems certain.
Wachovia loses $23.9 billion in Q3
Wachovia reported a third quarter loss of $23.9 billion, blaming an $18.8 billion goodwill impairment charge, declining market valuations and its acquisition by Wells Fargo.
Interbank lending remains stable
Sharp falls in European share prices and fears of recession had no impact on the interbank lending markets today.
Auction sets 57% recovery on Washington Mutual CDS
An auction yesterday established a final settlement price of 57% for Washington Mutual bonds, leaving sellers of credit default swaps (CDS) with higher-than-expected settlement payments as they close out contracts referencing the former US bank.
CDS spread widen further amid recession fears
The cost of protection on UK banks widened in early trading today as fears of recession fuelled volatile market conditions.
Interbank lending stays steady
The interbank lending markets remained stable today despite sharp falls in European share prices.
European bank CDSs rise
The cost of protection on UK banks climbed in early trading today as fears of recession fuelled volatile market conditions.
UK first in Europe to conduct Phase II carbon credit auction
The UK will be the first country in Europe to hold a carbon credit auction under phase II of the European Union Emissions Trading Scheme (EU ETS), the government announced today.
French bank CDSs tighten
The cost of protection on French banks fell in early trading today after the government said it would lend €10.5 billion to six of the country's biggest financial institutions.
Ted spread drops to monthly low
The strain on the interbank lending market eased further today as the Ted spread reached its lowest rate for almost a month and Libor continued to fall.