Pricing Transparency Needed To Bring ABCDS Flow
Transparent pricing is needed to create a liquid ABCDS market in Europe, according to panelists.
Transparent pricing is needed to create a liquid ABCDS market in Europe, according to panelists. "Until dealers make reports public on all [CDS on ABS] deals, there will not be developments in this market," said John Deacon, executive director and head of debt principal finance for Europe at UBS in London.
At present only a handful of the major dealers provide information on Bloomberg and this is holding back entrants who are not comfortable with the lack of pricing information. "Transparency is more important than standardization," said another dealer.
In the U.S., deal reporting is more frequent and Ben Logan, director in product development at Markit Group in New York, noted he is in discussions with a number of firms for them to provide Markit with pricing for CDS of ABS, namely CMBS and home equity, for distribution.