Sentences with phrase «default swap»

It's all centered around the «credit default swap».

Credit default swap Anyone who owns a bond faces two main risks.

The rumor at present is that these new CPDOs are leading to a tightening in the credit default swap market.

When we had the last spike, the credit default swap market had notional amounts smaller than the corporate bond market.

Now the credit default swap market is more than four times the size of the corporate bond market in nominal terms.

US Treasuries initially sold off only to recover, investment grade corporate bond markets had a somewhat muted reaction, while high yield and Credit Default Swap markets widened considerably.

The similar - sounding term, CDS (credit default swap), however, is a derivative.

With a leveraged bond portfolio, my understanding is that a credit default swap (CDS) can help hedge, but I'm...

With a leveraged bond portfolio, my understanding is that a credit default swap (CDS) can help hedge, but I'm not sure what the premiums are to hold the CDS.

And panic there is: even with the rebound of the past two days, the stock is down 44 % since the Deepwater Horizon accident, the credit - default swap spreads have widened to all - time highs, seven analysts have cut their rating this week alone, and well - known energy investment banker Matt Simmons said on Wednesday that «I don't think BP is going to last as a company for more than a matter of months.»

Thus, the VaR can at least provide a hypothetical measure of the risk of counterparty default on a credit default swap.

What is really interesting about the Einhorn's sovereign picks, however, is his long credit default swap (CDS) book.

An Empirical Comparison of Credit Spreads Between the Bond Market and the Credit Default Swap Market by Haibin Zhu of the Bank for International Settlements (490K PDF)-- 37 pages — August 2004

According to data provided by CMA DataVision, the credit specialists, the 10 - year credit default swap spread — a form of insurance contract against issuer default — has risen steadily — from 1.6 basis points (0.016 %) in July 2007, to 16 basis points in March 2008, to 30 basis points in September, to over 40 basis points on October 27 — see the chart below for the spread history so far this year.

A gap between credit default swap rates and bond yields reflects that.

I invite those objecting to this viewpoint to defend the credit default swap market, the source of the problem.

The credit default swap synthetically transfers credit risk on the portion of the $ 6 billion reference portfolio from GSCM to the ISSUER with respect to credit events.»

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

I understand that for a credit default swap (CDS), its CDS spread is the rate of payments that the buyer of the CDS makes to the seller in each year.

Now, what if the sponsors packaged the ETN with a default swap (written by third parties) to protect the investors if the company failed?

Greg Lippman (portrayed in the movie under the name Jared Vennett, by actor Ryan Gosling) was a credit default swap trader who worked for Deustche Bank.

The credit default swap (CDS) market is beginning to show spreads widening for consumer discretionary entities which is a bad signal for the economy.

It was a zero - sum bet: If you made $ 100 million, the guy who sold you the credit default swap lost $ 100 million.»

For instance, you might pay $ 200,000 a year to buy a ten - year credit default swap on $ 100 million in General Electric bonds.

A credit default swap was confusing mainly because it wasn't really a swap at all.

Why I like this quote: In all of my experience in the financial sector, all of the blogs and books that I read, this is by far the best definition of a credit default swap that I've ever encountered.

Props to Michael Lewis for this one, I've often sent this quote from The Big Short (with credit to Lewis) to people who are confused about the instrument known as the credit default swap.

Tyler oversees senior loan, municipal bond and credit default swap indices globally.

The eccentrics extolled in the opening scene include Michael Burry (Christian Bale), a Northern California — based MD and money manager who invents the credit default swap in the mid-Aughts, when the film's central action kicks off; Mark Baum (Steve Carell, also hideously coiffed), an obnoxious hedge fund manager whose backstory involving a dead - by - suicide brother somehow positions him as the film's most steadfast moral compass; and Ben Rickert (Brad Pitt), a onetime trader for Chase turned secular eschatologist who advises two young, aspiring operators, Jamie Shipley (Finn Wittrock) and Charlie Geller (John Magaro), how to bet against Wall Street.

Knowing that Wall Street bankers and government regulatory agencies has no intentions of acting to fix this certain doom, Burry invents a financial instrument called the credit default swap in order to «short» the booming housing market, much to the dismay of his hedge fund's owners and investors.

When four outsiders foresee the impending collapse of the global economy long before the big banks, media and government regulators realize what's happening, they capitalize on it by shorting the booming housing market through the invention of a clever financial instrument called the credit default swap.

Specifically, it charts the beginning of the credit default swap market, which basically bet against America's banks.

Caesars Entertainment argues the credit default swap market is giving at least one holder of its debt a perverse incentive to seek its default.

Since the crash, a down - spiral is underway in the $ 2.8 trillion municipal - funding system, in which local governments don't have the revenue to meet bond payments, they can't get new financing, municipal bond rates are rising, and, to worsen it all, crazy credit default swap deals have been foisted on localities.

For instance, when they lend out money, they buy insurance in case the borrower defaults on a loan - it's called a credit default swap.

To get the total present value of the credit default swap we multiply the probability of each outcome by its present value to give

Since December 1, 2011 the European Parliament has banned naked Credit default swap (CDS) on the debt for sovereign nations.

And earlier this week the UK's Credit Default Swap spread, or the price of insuring against a sovereign default, was lower than Germany's.

Now they utilize a whole range of different measurements, which can include credit default swap spreads and profitability.

The cost of protecting speculative - grade bonds against default in the credit - default swap market climbed to its highest level since July 6.

Portfolio credit - linked notes are debt securities that package together a standard corporate bond with a credit default swap.

The basic idea is this: issue a corporate bond and then package it with a credit default swap [CDS] for the same corporate bond, with the swap cleared through a clearinghouse, which should have a AAA claims - paying ability.

But long before regulators were publicly discussing bringing stability to the credit default swap market, the Intercontinental Exchange plunged in, clearing $ 12 trillion gross in notional amounts from July 27, 2009, to September 21 this year as a service to banks that arrange CDSs.

The other position is a long position in a Credit Default Swap (i.e., a position in which the bank sells credit insurance).

In the case of a portfolio credit - linked note, the rate reflects the combined creditworthiness of a portfolio of companies underlying the credit default swap rather than a single company.

The interest rate paid on the credit - linked note reflects the creditworthiness of the company underlying the credit default swap.

@EshanKejriwal Like a credit default swap?

Spain and Italy are holding up better, he adds, but 10 - year yield spreads to Germany and credit default swap prices for both of these Southern European countries have also been creeping up.

These are debt securities that package together a standard bond with a credit default swap.

Whistleblower Harry Markopolos says Credit Default Swap fraud will top the Madoff ponzi.