Credit default swaps

Ups and downs

Seen as a simple solution for reducing counterparty risk by regulators, moving credit derivatives on to central clearing platforms is proving fiendishly complicated. While progress is being made, it is generating more questions than answers. Mark…

CDS spreads tighten on European banks

The cost of credit protection fell today on European financials in response to yesterday's commitment by the Federal Open Markets Committee to buy up to $300 billion in long-term US Treasury securities.

Steady morning for bank CDSs

After a significant improvement in market sentiment yesterday, the cost of credit protection remained steady this morning on US financials, while falling on south-east Asian corporates.

US financials move on Bernanke prediction

The cost of credit protection on US and European financials fell in intraday trading, following US Federal Reserve chairman Ben Bernanke's prediction yesterday that the US economy will "see recovery beginning next year".

Eastern European CDSs move out

The cost of credit protection on the sovereign debt of several eastern European states rose in early trading today, despite a €24.5 billion aid package for the region's ailing financial sector promised on Friday by three international multilateral…

CDS risks

Claims that credit derivatives were a major cause of the financial crisis have prompted regulators to threaten to clamp down on the market. In the latest in the current series of Class Notes, Charles Smithson examines some of the risks of credit default…

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