Sentences with phrase «buying default protection»
What is even more worrisome is the cost of buying default protection Read more -LSB-...]
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What is even more worrisome is the cost of buying default protection on debt of issuers in the S&P / ISDA CDS U.S. Energy Select 10 Index has doubled during that time.
The cost of buying default protection on $ 100,000 par value of bonds issued by these companies has dropped from $ 890 (89bps) on December 31 2012 to $ 490 (49bps) as of May 9, 2014.
The cost of buying default protection on the largest bond market borrowers in the S&P 500 is tracked by the S&P / ISDA U.S. 150 Credit Spread Index and has fallen to lows which can be an Read more -LSB-...]
More telling is how the credit markets are viewing the cost of buying default protection on the debt of energy related companies.
The cost of buying default protection has risen by 185 % since May 1st, 2015 indicating the credit markets are expecting more distress in the sector over the near term.
Not exact matches
The SEC complaint goes on: ``... after participating in the portfolio selection, Paulson & Co. effectively shorted the RMBS [Residential Mortgage Backed Securities] portfolio it helped select by entering into credit default swaps (CDS) with Goldman Sachs to buy protection on specific layers of the ABACUS capital structure.
A credit default swap is a transaction where one party buys protection against the default of a corporate credit from another party.
They could buy protection via credit default swaps [CDS] to hedge their potential losses.
Bear ran with high leverage that made them vulnerable to attacks from those that bought credit protection in the credit default swap market... as those spreads went up, the willingness to extend credit went down.
There is also credit risk from the party buying protection on the default swap; if he goes broke, your extra yield goes away, at least in part.
You get protection against the financial default of a tour operator, airline or cruise line This depends on exactly which company you buy from, but in general you will have coverage for financial default.