Sentences with phrase «default swap market»

«When people are frightened, the first place they run is the credit default swap market,» says the head of debt capital markets at one leading Wall Street firm.

Currently, the credit default swap market trades at levels that suggest ResCap will soon default.

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

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.

Having a strong currency might be fine for Germany, but what of Greece, where the credit default swap market is pricing in a 12 % + probability of default over the next five years?

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.

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

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

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.

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

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.

On October 29th, 2015, a federal judge preliminary approved a settlement of a multi-district litigation alleging that JPMC and eleven other market participants rigged the credit - default swaps market.

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.

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 market for credit default swaps market (a derivative on insurance on when a business defaults), for example, was enormous, exceeding the entire world economic output of $ 50 trillion by summer 2008.

And the last time I recall a company saying its liquidity was fine was Bear, and at least at the time of its crunch, Bear's long - term prospects looked better than Ambacs» do (there is still ample debate as to whether Bear was insolvent or not: the answer in most cases depends on one's view of the credit default swaps market).

The credit default swaps market suffers more dislocation with every passing day.

Acting for Bank of America Merrill Lynch in its successful defence of two European Commission investigations and a US Department of Justice investigation into alleged infringements in the credit default swaps market.

Not exact matches

The old CDO market created lots of opportunities for investors to bet against corporate credit, because CDOs created lots of single - name credit default swaps that relative - value investors could buy.

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.

Figuring out ways to regulate trading by sophisticated investors in derivatives, which go by exotic names such as «currency forwards» and «credit default swaps,» is a hot topic in international policy circles, largely because failures on this murky side of the market are blamed for the 2008 global credit meltdown and the recession that followed.

In the 1990s he fought efforts to regulate derivatives — that once - opaque corner of the financial market where mortgage - backed securities and credit default swaps, at the centre of the financial meltdown of 2008, were flourishing.

The same article indicates that Citigroup is now considered one of the top three market makers in single name Credit Default Swaps in both North America and Europe.

For example, the credit default swap (CDS) market is a proven model for establishing a single trade record warehouse to collect and maintain data for all global CDS transactions and to hold a «golden source» record which serves the public good.

Through our integrated voice and electronic platform, we have desks around the world that can meet client demand in these markets, whether it's cash product, credit default swaps (CDS), i - Traxx products or ABS in all its forms.

Similarly, disruptions to markets for credit default swaps, or even simple foreign currency swaps, had a significant impact on the operations of institutions that relied on these markets to hedge their exposures and manage funding.

In 2007, the market for Credit Default Swaps (CDS) was on a six year journey from relative obscurity, to being the hottest financial product in the world.

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.

With the success of The Blind Side and Moneyball, Hollywood loves Michael Lewis» books, but how do you turn a highly engaging but very deep dive into the housing market crisis, credit default swaps and collateralized debt obligation into a movie?

Unlike the slick suits and killer sheen of Oliver Stone's Wall Street, this is a world of chaos and disorder filled with misfits who understand numbers more than people; from Christian Bale's Michael Burry, a socially awkward heavy - metal enthusiast who dreams up the credit default swaps that enable him to «short» the housing market, to Steve Carell's bereaved and fractured Mark Baum (a character inspired by the real - life Steve Eisman) who balances moral outrage and repressed self - loathing as he swims with sharks in the cesspool of the financial market.

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.

Over the course of a month when Mother Nature could not decide which season it was in New York City, credit market swap (CDS) market participants as a whole decided credit default insurance was too high.

In the past, there were no securities that existed to short the housing market, so investors invented credit default swaps.

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

They bet on a collapse in the mortgage market by buying what are called credit default swaps (CDS), a form of insurance against bad loans.

This leads the corporate bond market default in tandem with rising credit default swaps spreads.

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.

Investments: Greek bonds, Italian bonds, credit default swaps, European banks, the dollar / euro spread, US banks, US stock market — listed in order of declining risk and reward.

There were advantages of the over-the-counter markets for credit default swaps, interest rate swaps, and equity derivatives.

Risks related to credit default swaps («CDS») may include lack of an active market and difficulty in valuation.

I doubt there's a market for student load credit default swaps, given that the US government already backstops most of them through FFEL / Stafford / Plus.

This portfolio invests in derivative instruments such as swaps, options, futures contracts, forward currency contracts, indexed and asset - backed securities, to be announced (TBAs) securities, interest rate swaps, credit default swaps, and certain exchange - traded funds that involve risks including liquidity, interest rate, market, currency, counterparty, credit and management risks, mispricing or improper valuation, low correlation with the underlying asset, rate, or index and could lose more than originally invested.

Paulson became world - famous in 2007 by shorting the US housing market, as he foresaw the subprime mortgage crisis and bet against mortgage backed securities by investing in credit default swaps.

And then after the whole thing was over and now the markets have recovered the academics you know looked at it and the credit default swaps had almost no predictive power with respect to defaults.

Let's change the dynamic that has introduced so much speculation into the bond markets, where there is more credit default swaps than there are bonds available.

From Black Monday, Oct. 19, 1987, to the September 2008 crash caused by U.S. financials» exposure to toxic subprime loans and credit default swaps, it's no wonder that, when autumn nears, so do investors» fears of stock - market routs.

Check out Credit Default Swaps: An Introduction, Different Types of Swaps, An In - Depth Look At The Swap Market and The Alphabet Soup Of Credit Derivative Indexes.