Derivs - Credit
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March ABX.HE remittance reports showed conditional default rates rising for the first time in months, while delinquencies continue to fall.
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Even as market sentiment improves and the spread between bonds and credit default swaps normalizes, there are pockets of CDS-cash basis that offer attractive returns according to credit strategists at Goldman Sachs.
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"A default is not an issue for Greece,” European Central Bank President Jean-Claude Trichet declared this afternoon. But the activity in the credit default swap and government bond markets that morning suggested otherwise. -
A new credit derivatives product company, Martello Capital, has received provisional ratings from Moody’s Investors Service and plans to be operational this year.
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Société Générale is planning to hire an additional 500 people to its markets unit globally over the next 18 months.
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Norway, Finland, Sweden and Denmark occupy four of the top five spots in a CMA DataVision report ranking sovereign risk as judged by credit default swap spreads.
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Dealers are estimating a 34% recovery rate at auction for triggered credit default swaps referencing Ambac Assurance Corp.
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The European Commission will decide in October whether to ban naked sovereign credit default swaps.
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Ireland has been held up as an example of a country ready to suffer pain in tackling its acute fiscal situation. Credit default swaps on the nation widened by 13 basis points over the week to 141bp today—their widest level since the beginning of March—after the government announced details of the new National Asset Management Agency.
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BlueMountain Capital Management is set to launch two new credit funds.
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The European Banking Federation has called on European lawmakers to focus on better policing of derivatives rather than slapping bans on products such as credit default swaps.
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The illiquid nature of loans delivered into the auction to settle credit default swaps referencing Japanese lender Aiful on Thursday played a major role in raising the final result, credit analysts at Deutsche Bank believe.
