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Banks Pitch CMCDS In Japan

21 Oct 2004

Foreign houses in Japan, including Deutsche Bank and JPMorgan, have started marketing constant maturity credit-default swaps referenced to domestic credits with the belief that wider credit spreads could spark interest in the coming months.

Foreign houses in Japan, including Deutsche Bank and JPMorgan, have started marketing constant maturity credit-default swaps referenced to domestic credits with the belief that wider credit spreads could spark interest in the coming months.

One credit trader said there is not much interest at the moment, but the skyrocketing price of oil may add more volatility to the market in the coming months.

The products have gained in popularity in Europe over the last year with investors looking for ways of generating premium without being locked out of any future widening in spreads.

21 Oct 2004