Paul J Davies
CDS report: In a spin from global unwind
Credit markets suffered further from the global unwind that hammered Asian and European stock and currency markets on Monday morning as the nasty bout of risk aversion and deleveraging swept on unchecked.
CDS report: Crossover hits 900
There you have it – two barriers that not very long ago many thought would never be breached have now been broken through in two consecutive days.
The European iTraxx Crossover, the index of 50 mostly junk-rated names,
CDS report: Swiss take ownership of the problem
Switzerland’s moves to inject SFr6bn of capital into UBS while Credit Suisse looks to raise more than SFr10bn from other investors were greeted with glee by investors in the banks’ credit derivatives on Friday morning.
CDS report: Real economy comes into focus
Credit derivative markets turned their attention away from financial armageddon towards plain old recession on Wednesday morning, pushing up the costs of protection on thhe main indices for the first time this week.
CDS report: Ker-ching!
Credit markets saw a second strong start of the week in line with rallying stock markets after Monday’s late news that the US and various European governments were to follow the UK lead and make available billions of dollars and euros to recapitalise the battered banking system.
CDS report: Bank bounce
Royal Bank of Scotland and Halifax-Bank of Scotland were two of the biggest improvers in credit derivatives markets Monday morning even as shares in both tanked after the finalisation of the UK government plan to inject both groups with fresh capital.
CDS report: None too hot
Credit derivatives markets saw a major sell-off Friday morning mimicking the black despair seen in stock markets since the big US collapse late on Thursday.
The banks once again suffered, with Barclays,
CDS report: RBS singled out
Royal Bank of Scotland was being singled out by the credit derivatives traders in Europe on Tuesday morning as the UK bank that is also taking the most punishment in the stock markets saw its cost of debt protection pushed sharply higher even as the rest of the market was looking much better.
CDS report: Big Mac and fried in the US
The US has been so hurt by the financial turmoil that markets now view its credit worthiness as akin to – or even worse than – that of McDonald’s, a shocking fact even if you believe that both are fronted by clowns.
CDS report: US plan uncertainty weighs on Europe
European credit derivatives remained under pressure on Thursday morning as the lack of resolution to the US bail-out question continued to infect sentiment with a degree of uncertainty.
Spreads move were muted but banks and insurers were again among the biggest movers in Europe along with some resources companies.
CDS report: Calmer waters
European credit derivatives opened in much brighter mood on Thursday cheered by the easing of pressure among banks following the Lloyds deal to takeover HBoS in the UK and the overnight news that Morgan Stanley was in talks with Wachovia.
CDS report: Relief all round (almost)
European credit derivatives rallied Wednesday morning after deals were struck overnight in the US to stop AIG imploding, to hand some Lehman businesses to the UK’s Barclays bank, while there was breaking news in the UK that struggling mortgage bank HBoS was in talks to be acquired by local rival Lloyds TSB.
CDS report: Correction continues
European credit derivative markets opened in great turmoil once more on Tuesday following the biggest single-day correction ever witnessed for the investment grade indices in both the US and Europe on Monday.
CDS report: Protection costs jump, but traders frozen
The cost of insuring European corporate debt against default shot up on Monday morning as traders struggled to digest the news that a large US investment bank was being allowed to fail.
However, market
CDS report: Banks, retailers help credit
European credit derivatives markets saw further strengthening Monday morning as investors decided an overly gloomy view of the outlook for retailers and cyclical industries ought to be pared back.
Banks also did better as both credit and equity markets reacted well to a probable capital raising from HBOS,
CDS report: Poor earnings point to pain
The cost of credit protection in Europe lurched wider Monday morning as the markets felt the sting from Friday’s very poor earnings from industrial and financial megalith GE and heightened nervousness ahead of the big US banks’ Q1′s this week.
CDS report: Drifting wider ahead of Fed
European credit derivatives markets followed the weaker mood of equities markets Tuesday morning as trading thinned ahead of the US Federal Reserve’s interest rate decision on Wednesday, according to traders.
CDS report: Merrill weighs on credit
European credit derivative markets saw the optimism of the past couple of days knocked down by talk that Merrill Lynch would announce a further $2.5bn of write downs from credit losses on Wednesday – adding to the $5bn hit already “pre-announced.”
CDS report: Bid rumours boost Rank
Rank Group, the UK leisure veteran and bingo specialist that is suffering more than most from giving up the fags, saw its shares leap and cost of protection in the credit markets tumble on Tuesday after some talk that a gaming business such as Ladbrokes or William Hill might come in to buy it.
CDS report: A bleak Monday for credit
European credit derivatives markets sold off strongly on Monday morning with the cost of protecting corporate debt against default leaping sharply higher after a similar wave of negativity swept over US credit markets on Friday.
CDS report: Mood bleak for anniversary
European credit derivatives opened in distinctly bearish mood Friday in what traders described as a quiet market on the 20th anniversary of the Black Monday stock market crash.
With oil breaking above $90 per barrel,
CDS report: Bad call from Ericsson
European credit derivative markets opened weaker on Tuesday after Ericsson, the Swedish telecoms equipment group, reported third-quarter profits down by more than one-third and helped to drag down other technology names.
CDS report: Banks’ plans help credit
The plan by leading US investment banks to spend $75bn propping up markets in structured debt – reported in the FT – provided a boost to European credit derivatives markets on Monday morning following the weakness seen on Friday.
CDS report: Earnings jitters brushed off
European credit derivative markets brushed off the earnings jitters that troubled US credits and stocks overnight and continued their grinding move to shave more off the cost of protecting corporate debt against default.
CDS report: Sainsbury pension stance hurts bid
J Sainsbury saw a dramatic fall in the cost of protecting its debt against default in European credit derivatives markets on Tuesday morning following Monday’s equally dramatic rise as the road to a potential buy-out of the UK supermarket group turned bumpy once more.
CDS report: BAA refinancing in stormy weather
Ferrovial’s long planned refinancing of the debt of BAA, the UK airports operator, looks to have been grounded until well into next year after the UK Competition Commission report into charges at its two main airports scuppered the economics of the expected £8bn deal.
CDS report: Credit crunch over(!)
The key to happiness is self-delusion, Dilbert once said. Market watchers are wondering whether the exuberance of this week so far is really based on a sound footing, or the kind of giddy ecstasy that might be expected of a drowning man.
CDS report: Citigroup hits sentiment
Europe’s credit derivative markets opened little changed Monday morning after Friday’s strong sell-off, but the warning from Citigroup late in the morning that it could see a 60 per cent drop in third-quarter profits turned the mood darker once more.
CDS report: Bulls push on
European credit derivatives markets resumed with a stronger flavour Friday and the cost of protecting corporate debt against default dropped across the board, confounding the expectations of some analysts that the introduction of new indices on Thursday would bring back a bleaker feel.
CDS report: Fed boost for credit
The cost of protecting European companies against default dropped sharply on Wednesday morning in line with the rallies in stock markets following the US Fed’s call to cut rates by an intoxicating 50 basis points on Tuesday.