Airbus, car makers’ CDS curves distorted by bank hedging as dollar climbs

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Airbus, car makers’ CDS curves distorted by bank hedging as dollar climbs

Airbus 230x150
The Airbus A380exposed on the static display at Farnborough Air Show 2014

The strong dollar is giving banks rising counterparty exposure to export-heavy European companies that they need to hedge in the credit default swap market, pushing spreads for those firms wider, writes Dan Alderson.

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