GFI: financials and telecoms most active CDSs

Credit default swaps (CDSs) referenced to financial services and telecommunications firms were the most active in the global credit default swap market in January, according to New York-based interdealer broker GFI.

GFI said that, for the first time in more than a year, motor manufacturing was no longer the most active sector in US CDS trading. Instead, financial services dominated, led by California-based Countrywide Home Loans. San Francisco-based clothing retailer Gap and Michigan-based carmakers General Motors and Ford were also on GFI’s most-active single name list.

In Europe, telecommunications was the most active sector for the fourth month in a row, with Telecom Italia and Netherlands-based KPN among the most active single names. London and Amsterdam-based publisher Reed Elsevier and UK media company Pearson helped make publishing one of GFI’s most active sectors. Portugal Telecom International Finance was also on the most-active list.

In Asia, financial services remained the most active sector for the ninth month running, led by Kazakhstan-based Bank TuranAlem and Japan-based banks Aiful, Softbank and Takefuji. Tokyo-based Toshiba was one of the most active single names, pushing the computing sector back into the most-active list.

GFI also said January’s most active sovereign CDSs were referenced to the governments of Brazil, Russia, Turkey, Ukraine and Venezuela.