«If there were greater worries about the economy or other downside risks, then we should have seen the dollar rise, credit and
swap spreads widen, and emerging markets underperform.
Not exact matches
The credit default
swap (CDS) market is beginning to show
spreads widening for consumer discretionary entities which is a bad signal for the economy.
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.»
That indicates decreased confidence in the banking system, though
swap spreads have not
widened to confirm that judgment.
Additionally, in the face of the disruption in the credit markets and the recent announcements by Fitch, Moody's and S&P concerning financial guarantee insurers generally and MBIA Corp. in particular, the price of our common stock has experienced a significant decline and there has been a
widening of
spreads on our credit default
swaps.
This recent
widening of
spreads on our credit default
swaps could impact the perception of our financial condition by MBIA Corp.'s insured bondholders and counterparties and could affect their willingness to purchase MBIA Corp.'s insured bonds and to continue to enter into transactions with MBIA Corp..
Triple - A
spreads, which were at
swaps plus 42 basis points in mid-July, could
widen beyond the levels of the J.P. Morgan - Wachovia offering if general business anxiety continues.
That's because CMBS
spreads to 10 - Year Treasuries and 10 - Year
Swaps have both
widened massively from a year ago.