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Credit markets

CDS spreads tighten as bailout is revised

The cost of protection on some of the world’s largest financial institutions fell yesterday as the US Senate agreed to vote on a revised version of the $700 billion financial rescue plan.

Failure of $700bn bailout sparks equity slump

US equity markets have experienced their biggest one-day drop in history following the failure of the US Congress to pass legislation that would have empowered the Treasury department to buy up to $700 billion in mortgages and other assets from…

Bailout saga pushes CDS spreads ever wider

After another tumultuous 24 hours that saw talks stall on the US government’s $700 billion plan to purchase devalued assets from financial institutions and the forced closure of Washington Mutual, credit default swaps (CDSs) for major dealers continued…

Strain eases on interbank lending

After a turbulent week, pressure on the interbank lending markets eased today as further injections of liquidity were announced and talks on the US financial rescue package resumed.

Isda survey points to slowing credit derivatives market

The notional amount of outstanding credit derivatives dropped 12% to $54.6 trillion at the end of June 2008, from $62.2 trillion at the end of 2007, according to the mid-year market survey from the International Swaps and Derivatives Association (Isda).

Cox calls for CDS controls

Christopher Cox, Chairman of the US Securities and Exchange Commission (SEC), has called for greater regulation of the credit default swaps (CDS) market.

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