Sentences with phrase «credit default protection»

We had a lot of macro protection in terms of credit default protection on bonds we didn't own, just betting that credit spreads would widen.

ICE offers Eris Exchange credit index derivatives as cash settled futures with $ 100,000 notional principal, whose value represents a basket of credit default protection on the entities in the index.

Not exact matches

Credit default swaps figured prominently in the financial crisis, notably in the near - collapse of American International Group, a giant insurer that sold protection to investors in home mortgages but couldn't pay out on the policies when the housing market crashed.

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.

And then there is the matter of allowing the public to assess counterparty risks building up at our insured banks after AIG sold credit protection derivatives (credit default swaps) across Wall Street that it could not pay in the crisis, forcing another massive government bailout.

The presence of a cosigner with a strong credit and income history is a safety net for the lender — with a cosigner, lenders have an extra layer of protection against borrower default.

Unlike private student loans, federal direct student loans don't require credit history or a co-signer, and they have more repayment options and protections to prevent default.

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.

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 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-...]

But given the history of fraud and abuse in the debt relief industry, the inability to provide any legal advice, and the carnage that can be done by defaulting on debt without some real protection, the debt settlement company and credit counselor risks are too great and the advantages too nominal.

The party selling protection receives a constant payment over the life of the transaction so long as the corporate credit does not default.

A credit default swap is a transaction where one party buys protection against the default of a corporate credit from another party.

Second, had AIG collapsed, the systemic implications on other market participants might have made it difficult for Goldman Sachs to collect on the credit protection it had purchased against an AIG default, although Goldman Sachs stated that it had received collateral from its counterparties in those transactions.

Finally, if AIG had defaulted, Goldman Sachs would have been forced to bear the risk of further declines in the market value of the approximately $ 4.3 billion in CDOs that it transferred to the Maiden Lane III portfolio as well as approximately $ 5.5 billion for its credit default swaps that were not part of the Maiden Lane III portfolio; Maiden Lane III removed any risk for the $ 4.3 billion within that portfolio, and continued Government backing of AIG provided Goldman Sachs with ongoing protection against an AIG default on the remaining $ 5.5 billion.

Bear Stearns, by virtue of being a major credit default swaps protection writer, could have triggered cascading defaults in the primed - for - disaster credit default swaps market.

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J.P. Morgan Chase & Co.'s Chase unit is raising its rates on credit - card cash advances and overdraft protection, as well as its default rate, which is triggered when cardholders exceed their credit limit or are late on their payments.

This use of credit protection does not mean that a defaulted loan is productive for a lending institution, however.

AIG famously leveraged its AAA credit rating to sell (write) credit default swaps (CDS) to counterparties who wanted default protection (in many cases, on CDO tranches).

Further, insofar as it acquires credits, the Fund wants covenant protection in the event that forecasts are wrong and a money default occurs.

One of the more important reasons to use a credit card for any purchase is to gain the protection against product defaults.

Credit default swaps provide a measure of protection against previously agreed upon credit eCredit default swaps provide a measure of protection against previously agreed upon credit ecredit events.

I didn't think I'd see a proposal like this one which would (seemingly) bar investors from purchasing default protection via the credit default swaps [CDS] on corporations without owning the underlying bonds.

With a secured credit card the individual must leave a deposit which is used as security and protection against default.

In this way, the buyer of a credit default swap receives credit protection, whereas the seller of the swap guarantees the credit worthiness of the debt security.

They could buy protection via credit default swaps [CDS] to hedge their potential losses.

The investment management services operations have entered into derivative transactions primarily consisting of interest rate, cross currency, credit default and total return swaps and principal protection guarantees.

We generally provided credit default swap protection on the most senior liabilities of structured finance transactions, and at inception of the contract our exposure generally had more subordination than needed to achieve triple - A ratings from credit rating agencies (referred to as «Super Triple - A» exposure).

The Company generally provided credit default swap protection on the most senior liabilities of structured finance transactions, and at inception of the contract its exposure generally has more subordination than needed to achieve triple - A ratings from credit rating agencies (referred to as «Super Triple - A» exposure).

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.

The primary consumer protection problem areas that have given rise to the States» actions include: (1) unsubstantiated claims of consumer savings; (2) deceptive representations about the length of time necessary to complete a debt relief program; (3) misleading or failing to adequately inform consumers that they will be subject to continued collection efforts, including lawsuits, and that their account balances will increase due to extended nonpayment under the program; (4) deceptive disparagement of consumer credit counseling; (5) deceptive disparagement of bankruptcy as an alternative for debtors; (6) lack of screening and analysis to determine suitability of debt relief programs for individual debtors; (7) the collection of substantial up - front fees so the debt relief company gains even if it fails to perform; (8) lack of transparency and information for consumers as to payment of fees, status of accounts, and communications with creditors; (9) significant delays in active negotiation or engagement with creditors, coupled with prohibitions on direct consumer communications with creditors; and (10), in the case of debt settlement companies, basing savings claims (and settlement fees) not on the original account balance, but on the inflated amount due (including late fees and default rates of interest) at the time of settlement.

As uncertainty rises, the cost of credit protection (i.e., credit default swaps [CDS]-RRB- within the energy sector has skyrocketed, as evidenced by the S&P / ISDA CDS U.S. Energy Select 10 (see Exhibit 1).

According to the Consumer Financial Protection Bureau: «Each lender uses its own process to determine the risk that you will default on a loan, but most use your credit score, employment status, income, and other outstanding debts, among other factors.»

Since your credit rating takes a hit after you file for bankruptcy protection, unless you default on monthly payments to an automobile insurance company, there is really no basis for your insurance company to raise your premiums.

Otherwise Paypal will default to your existing balance and you won't have the credit card protection.

The demand for yield is huge, which drives the offering of protection in the credit default swap market.

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.

-- Most CLOs offer additional loss protections: i) Credit enhancement — credit insurance / guarantees, ii) Excess spread & reserves — a positive interest spread's earned, which may be used to build loss reserves, iii) Overcollateralization (O / C)-- the CLO sponsor adds additional collateral, say an extra $ 5 mio for every $ 100 mio of assets, and iv) Early amortization — an increased level of defaults, and / or certain other events, may trigger an accelerated repayment of principal (AAA notes have priority, of coCredit enhancement — credit insurance / guarantees, ii) Excess spread & reserves — a positive interest spread's earned, which may be used to build loss reserves, iii) Overcollateralization (O / C)-- the CLO sponsor adds additional collateral, say an extra $ 5 mio for every $ 100 mio of assets, and iv) Early amortization — an increased level of defaults, and / or certain other events, may trigger an accelerated repayment of principal (AAA notes have priority, of cocredit insurance / guarantees, ii) Excess spread & reserves — a positive interest spread's earned, which may be used to build loss reserves, iii) Overcollateralization (O / C)-- the CLO sponsor adds additional collateral, say an extra $ 5 mio for every $ 100 mio of assets, and iv) Early amortization — an increased level of defaults, and / or certain other events, may trigger an accelerated repayment of principal (AAA notes have priority, of course).

Current technology platform gives lenders access to extra protection against possible loan defaults through funding and beyond Salisbury, Md., November 15, 2016 — Credit Plus, a provider of... Read More

The policy provides protection against any default of a line of credit given to a foreign buyer for importing machinery and equipment from India.

The insurance provides protection against defaults of credit given to foreign buyers for importing machinery and equipment from India.

Every time you're late on a payment or default entirely on the IL renters protection plan, it goes against you like a negative credit rating.

He owns credit default swaps on those securities, and said his firm also owned protection against Neiman Marcus Group Inc., which has an active and liquid derivatives market.