Drop likely in credit protection on Asian automakers

05 Aug 2009

Trading in credit default swap contracts for Asian automakers proved popular in July on the back of company earnings announcements, but industry analysts say this is uncommon and they don’t expect it to continue.

Traders bought or sold more protection against Asian automakers defaulting on their debt than on companies in any other sector in the region last month, a report has found.

Contracts referencing Toyota Motors’ ability to repay its debt was one of the most heavily traded, according to GFI, an ...

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