Sarah OConnor
CDS report: storm clouds gather
The perceived riskiness of European corporate debt shot higher on Wednesday, with key credit default swap indices pushing back towards record highs after a recent lull.
A barrage of threatening news on monolines and CDOs from Fitch,
CDS report: FKI’s spreads shoot up on possible buy-out
The cost of protecting FKI’s debt against default jumped by 11 per cent on Tuesday as the market weighed up the probability that industrial investor Melrose Plc would buy the British manufacturer.
Melrose,
CDS report: Market left dazed and confused
The European credit market tried to catch its breath on Monday as investors, reeling from a rollercoaster-ride start to the year, struggled to predict how events would play out from here.
“People are a little bit dazed after the huge volatility over the past few weeks,”
Ackman: “It is hard to fill a bucket with a hole at the bottom.”
William Ackman, the activist shorter of the monolines, has stepped up his one-man campaign to bring the beleaguered insurers down.
He claims he has obtained the most detailed yet data on Ambac and MBIA’s exposure to CDOs,
CDS report: Kaupthing spreads rally on cancelled buy-out
The cost of protecting Kaupthing’s debt against default plummeted on Wednesday after the Icelandic bank abandoned its plan to buy Dutch merchant bank NIBC.
Kaupthing’s five-year credit default swaps tightened by 100 basis points to around 360bp according to BNP Paribas indicative prices,
CDS report: Market braces for significant week
Protecting European corporate debt against default grew more expensive on Monday, as a possible US recession and the unresolved monoline crisis weighed on investors’ minds.
After a spectacularly volatile week,
CDS report: credit market cheered by monoline bailout plan
The perceived riskiness of European corporate debt receded on Thursday as the credit market cautiously welcomed news of a possible monoline bailout plan.
In Europe, the iTraxx Crossover index of mostly junk-rated corporate debt tightened about 34 basis points to 448bp according to UBS prices.
CDS update: credit markets underwhelmed by Fed rate cut
The Fed’s 75 basis point emergency rate cut failed to shake credit markets from their gloom on Tuesday, as a brief rally soon faded away.
The iTraxx Crossover of mostly junk-rated debt, a closely watched measure of risk appetite,
CDS report: nerves still a-jangle over credit contagion
The cost of protecting European debt against default continued its relentless climb higher on Friday, the market haunted by what could happen if and when the major monolines are downgraded.
The iTraxx Crossover,
CDS report: Equity sell-off blows spreads wider
The cost of protecting European corporate debt against default shot up on Wednesday, as a global equity sell-off pushed spreads to levels not seen since July last year.
The iTraxx Crossover index of mostly junk-rated European corporate debt jumped 13 basis points to hit 419bp at midday.
CDS report: spreads widen sharply as market expects grim week
An obstinately pessimistic credit market sent the cost of protecting European corporate debt against default shooting higher on Monday.
Still shaken by Ben Bernanke’s gloomy words about the economy last Thursday,
CDS report: spreads hit highs across globe
The perceived riskiness of corporate debt swelled further on Thursday, with the cost of protecting debt against default in Europe and Asia hitting new highs.
In Europe, the HiVol index, which covers 30 companies from the main index with the highest spreads including Next and Marks and Spencer,
CDS report: Cost of protecting Marks and Spencer debt soars
The cost of protecting Marks and Spencer’s debt against default jumped to its highest level since 2005 on Wednesday after the retailer reported a drop in sales, stoking fears of a consumer slowdown and recession in the UK.
CDS report: Gloomy market takes a breather
The cost of protecting European corporate debt against default edged slightly lower on Monday, ending a bearish run which saw prices swell significantly last week.
The iTraxx Crossover index of mostly junk-rated corporate debt swung wider still as the market opened,
CDS report: traders mull government moves
The cost of protecting European corporate debt against default receded slightly on Wednesday as traders cautiously responded to moves from the US and British governments to intervene in the sub-prime crisis.
CDS report: fears of credit crunch spillover send spreads wider
The perceived riskiness of European corporate debt increased on Tuesday as traders in credit default swaps, worried the credit squeeze will ripple from banks to the wider economy, drove spreads wider.
Concerns for banks’ balance-sheets were exacerbated yesterday when the one-month sterling Libor rate hit a nine-year high.
CDS report: a calm response to the latest SIV downgrades
The cost of protecting European debt against default edged slightly higher on Monday, but credit default swap traders barely blinked at Moody’s threat to downgrade $105bn worth of debt issued by structured investment vehicles.
CDS report: Bid rumours drive Colt Telecom’s credit default swaps tighter
The cost of protecting Colt Telecom’s debt against default plunged on Friday after reports its majority shareholder was trying to persuade America’s leading telephone firm AT&T to buy the smaller British company.Colt’s credit default swaps tightened up to 120 basis points after the Guardian reported “City whispers”
CDS report: Traders react cautiously to signs of a Fed rate cut
Credit default swap traders were invigorated by a global rally in equity markets on Thursday morning, spurring a rally on the major indices before pessimism about the prospects for credit markets kicked in and the market retraced its steps.
CDS report: Risk-averse market treads water
Credit default swap traders bemoaned a further drying of liquidity in Europe’s markets yesterday as light volumes and scant newsflow left prices relatively unchanged.
“The market is drying up, there’s even less liquidity than there was a week ago.
CDS report: “We’re waiting for a sign”
Traders in the European credit derivatives market remained jittery on Tuesday, fearing yet more bad news from investment banks exposed to the subprime mortgage market.
Initially there was lift in morning trade following overnight news that Citigroup has secured $7.5bn from the Abu Dhabi Investment Authority to relieve its overstretched balance sheet.
CDS report: Is cheaper protection just a blip?
The cost of protecting European corporate debt against default became significantly cheaper on Monday, surprising analysts who were expecting the market to move the other way.
When credit default swap indices hit new highs on Wednesday last week,
CDS report: Cost of Kelda protection doubles
The cost of protecting debt against default in Kelda Group doubled on Friday as traders worried the consortium that has offered to buy the UK water company would severely damage its credit-worthiness.
Kelda’s five-year credit default swaps reached 95 basis points by mid-morning trade,
CDS report: European indices hit record levels
The cost of protecting financial companies’ debt against default hit its highest recorded level in Europe on Wednesday as an increasingly bleak outlook for credit sent the closely watched Crossover index through 400 basis points.