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Credit default swaps

CDS risks

Claims that credit derivatives were a major cause of the financial crisis have prompted regulators to threaten to clamp down on the market. In the latest in the current series of Class Notes, Charles Smithson examines some of the risks of credit default…

US sovereign CDSs hit 100

The cost of credit protection on US national debt reached an all-time high in intraday trading amid expectations of further government bail-outs.

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.

Financial CDSs move on stimulus plan

The cost of credit protection on US financial institutions fell in early trading today, following yesterday's announcement by Treasury secretary Timothy Geithner of a $1 trillion toxic asset purchase plan.

Portal combat

The first central clearing houses for credit default swaps were expected to start business in December, but regulatory hold-ups delayed the launch in the US and are also causing issues in Europe. Although four ventures are planned, some dealers expect…

Breath of Liffe

Amid fierce competition and regulatory scrutiny, the combined initiative by derivatives exchange Liffe and clearing house LCH.Clearnet for clearing credit default swaps was launched on December 22. Will the two companies have a first-mover advantage? By…

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