Sentences with phrase «default swap rates»

Why not use credit default swap rates to determine credit quality rather than the «official» bond ratings?

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

Not exact matches

If you like, you could further magnify the returns by shorting house price indexes or buying default swaps on the regions we heavily target or shorting the banks that have significant exposure in those regions as we would be increasing their default rate (note — need to investigate the short aspect for legality).

Tax cuts on wealth are promoted as if they will be invested rather than used to pay the financial sector more interest or be gambled on currencies and exchange rates, interest rates, stock and bond prices, credit default swaps and kindred derivatives.

Multilateral Trading Facility — MTF Bloomberg Trading Facility Limited's multilateral trading facility, BMTF, is a robust trading platform for trading credit default swaps (CDS) and interest rate swaps (IRS).

«Secretary of the Treasury Timothy Geithner and predecessor Hank Paulson said they didn't bail out AIG to save its derivatives counterparties» from bad credit default swap contracts because if it would have asked these counterparties to «take a haircut,» credit - ratings agencies would have downgraded AIG.

Spreads between corporate bond yields and swap rates and the premia on credit default swaps have fallen slightly over the period, and are very low by historical standards (Graph 44).

That's because low interest rates, like sub-prime mortgages and credit default swaps, are the proper financial instrument in very limited circumstances.

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

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.

For particular banks we'll look at a number of different metrics, including credit default swaps, stress test results and credit ratings.

Moreover, these leverage levels took the assessment of rating agencies and credit default swaps («insurance» against loan and other defaults) at their face value.

Absent the FDIC and Federal Reserve, banks would substitute a good credit rating and high capitalization for «insurance» or credit default swaps, because that will enable them to take cash loans from other banks to meet cash shortfalls, and ideally to prevent withdrawals in the first place.

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.

If the film were described as a tutorial on MBS (Mortgage - backed Securities), CDO (Collateralized Debt Obligations), Credit Default Swaps, Tranches, Bond Ratings, and Sub-Prime ARMs, most people's eyes would glaze over and they would keep skimming for showtimes of other new movie releases.

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.

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

For example, MBIA has $ 45 billion of derivative obligations at the holding company that relate to currency, interest - rate, and credit default swaps that the holding company has entered into.

The bubble was a combination of (a) teaser rates on option ARMs which were like financial time bombs, (b) liar loans in which the rules of good mortgage underwriting (20 % down, 28/36 ratios) went out the window, (C) people at rating agencies who decided that if one pools enough junk loans into one bond, it's magically AAA, and (D) Credit default swaps which encouraged these bad loans, and when they collapsed a number of people walked away with billions of dollars.

Mortgage brokers lying, banks not reviewing paperwork, applying policies designed for first time buyers to 3 times as many folks buying their 2nd, 3rd, 4th etc home, appraisers giving banks whatever values they wanted on appraisals, rating agencies doing likewise for CDO's, insurers issuing credit default swaps without even a fraction of the backing needed.

Remember subprime mortgage lending, no - doc mortgage loans, mortgage - backed securities, credit default swaps, derivatives, suspect credit ratings, the housing value plunge, the 2007 - 08 financial meltdown, and foreclosures galore?

It includes the previous, but it can also do things like derivatives, interest rate swaps, and credit default swaps.

Swap Pricing with Two - Sided Default Risk in a Rating - Based Model by Brian Huge of the University of Copenhagen, and David Lando of the University of Copenhagen (169K PDF)-- 30 pages — January 1999

Examples pertinent to this crisis included: the adjustable - rate mortgage; the bundling of subprime mortgages into mortgage - backed securities (MBS) or collateralized debt obligations (CDO) for sale to investors, a type of securitization; and a form of credit insurance called credit default swaps (CDS).

The high delinquency rates led to a rapid devaluation of financial instruments (mortgage - backed securities including bundled loan portfolios, derivatives and credit default swaps).

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).

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.»

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.

Excluded from the Index are non-corporate bonds, structured notes with embedded swaps or other special features, bonds with equity - type features (e.g., warrants, convertibility), floating - rate issues, Eurobonds, defaulted bonds, zero coupon bonds and payment in kind securities.

LCH.Clearnet, the result of a merger between the London Clearing House and Clearnet, acts as a CCP for a wide variety of financial products, from equities and commodities to credit default swaps and interest rate swaps.

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 investment management services operations and corporate operations enter into OTC derivatives, such as interest rate swaps, currency swaps, credit default swaps and total return swaps, which predominately trade in liquid markets.

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).

Our debt ratings utilize fixed income market data such as bond - implied gaps and credit default swap spreads as well as traditional credit analysis to arrive at a debt rating that we feel is more accurate and timely than conventional debt ratings.

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Currently representing the Lehman Brothers Estate in a multi-billion derivatives dispute against Credit Suisse concerning the close - out of foreign exchange, interest rate and credit default swaps following the Lehman bankruptcy.

Representing a European Bank over many years in a series of interbank disputes arising from the conduct, execution and settlement of derivative transactions, including, interest rates swaps, currency swaps, bonds and repo trades on Eurex, OTC options, credit default swaps, and an Argentinian MTN programme.

Responsible for processing Stocks, Bonds, Credit Default Swaps, CME (Chicago Mercantile Exchange - interest rates, currency, equities, stock indices, futures)

Gathered the requirements for the customization of the Front office Trading application encompassing Derivative instruments including Vanilla Swaps, Futures, Credit Default Swaps, Warrants, convertible Bonds, Index Swaps, Interest Rate Swaps, Bond Options, FX etc

Providing pricing and valuations for Interest Rate, Credit Default, and Total Return Swaps as well as OTC Options.

Utilized project management skills to lead division wide effort for Dodd / Frank implementation for the clearing of OTC derivative products including interest rate swaps and credit default swaps

Trade capturing and settlements of all interest rate derivatives and other derivative products such as credit default swaps, ETD derivatives, bond options, swaptions and credit default index swaps in custody accounting.