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’The men who short-sold the world
Well, not quite. But shorting specialists Data Explorers did come up trumps on Monday with a report which took a global perspective on the last twelve months’ short and long positions.
According to Data Explorers,
It’s official: Ambac’s CDS triggered
It’s the event Ambac thought would never, ever come:
The International Swaps and Derivatives Association, Inc. (ISDA) announced that its Americas Credit Derivatives Determinations Committee resolved that a bankruptcy credit event has occurred in respect of Ambac Assurance Corporation,
Greece and the markets, post-bailout plan
It’s not a bailout — honest, according to the European leaders who reached an accord on Thursday over a ‘financing plan’ to help Greece, in case it can’t raise funds through the market in the near future.
The CDS market has faith in eurozone unity
FT columnist Wolfgang Münchau is increasingly skeptical.
Martin Tayler, the former CEO of Barclays, is concerned.
But there’s one place where eurozone unity is still, or rather was of March 18, being priced in:
Gensler on CDS regulation: many a mixed metaphor
CFTC Chairman Gary Gensler is no fan of derivatives in general, and credit default swaps in particular.
As he told attendees of a Markit conference on derivatives (via Risk magazine):
“I really do think CDSs directly contributed to the financial crisis of the past year-and-a-half,” commented Gensler,
Sovereign CDS: Do we see the dust — clearing?
And the war over credit default swaps rages on.
On Thursday, Europe wheeled out out the big guns, with four of the region’s leaders demanding an inquiry into the CDS market.
The leaders of Germany,
Repeat after me: CDS are not insurance
Alright, hold it.
In the midst of the ongoing and increasingly heated debate about credit default swaps, be they naked, sovereign or Sharia compliant, one fundamental fact has been overlooked: these instruments are not insurance.
Greece v everyone, BaFin and speculators edition
Hot on the heels of a declaration from the German finance regulator that it had not found any evidence of derivatives being used to speculate against Greek debt comes the following from the NY Times:
The Greek prime minister on Monday called on the United States and the European Union to crack down on speculative trading,
BaFin says no evidence of malign Greek CDS speculation
Just out from the Die Bundesanstalt für Finanzdienstleistungsaufsicht, better known (for obvious reasons) as BaFin, the German financial regulator:
Die Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin) hat –entgegen anders lautender Berichterstattung – bislang keine Anhaltspunkte dafür gefunden,
‘The state of some countries’ public finances is certainly not speculators’ fault’
The backlash against the backlash against hedge funds and other traders of sovereign CDS has begun.
Citi was first off the mark, deploring in a note on Tuesday suggestions that so-called ‘naked’ credit default swaps ought to be banned.
US regulators discover sovereign risk
Before you accuse US banking regulators of being slow to act on the ongoing sovereign shakeout, Comptroller of the Currency John Dugan wants you to know that they’re on the case.
As Reuters reported on Monday:
Craig Pirrong v Gary Gensler: who’s right on OTC derivatives?
We do love a good battle of the intellects here on FT Alphaville, so it was impossible to pass up this opportunity.
On Thursday, the FT featured an op-ed by CFTC chairman Gary Gensler on the topic of derivatives.
60 cent
Fresh jitters in Dubai on Monday morning.
RTRS-DUBAI FIVE-YEAR CREDIT DEFAULT SWAPS RISE TO 651 BPS FROM 627 AT FRIDAY CLOSE-CMA
RTRS-DUBAI FIVE-YEAR CDS RISE ABOVE NOV 2009 LEVELS TO HIGHEST SINCE MARCH 2009-CMA
RTRS-NAKHEEL’S 2011 ISLAMIC BOND FALLS 3.5 POINTS TO 50,
Dear derivatives traders: the SEC is watching you
Robert Khuzami, the SEC’s resident bulldog and chief of enforcement, had a warning for participants in the derivatives market on Monday.
As Bloomberg reported:
“The days of insider-trading scrutiny being focused almost solely on the equity markets are now gone,”
David Einhorn vs the bloggers on credit default swaps
On Friday, the FT published a piece detailing David Einhorn’s objections to credit default swaps, which he first raised in a recent letter to investors.
And by objections, we mean the boy-genius founder of Greenlight Capital thinks the instruments which have served him so profitably ought to be banned outright.
Kradbury: What the CDS market thinks
Below is a chart from Bloomberg showing how the credit default swap market has reacted to Kraft’s proposed $16bn cash and stock offer for Cadburys.
The sharp jump in Kraft’s 5-year CDS spread is
ING, enhanced but not necessarily improved
Netherlands-based ING has followed in the footsteps of US and UK counterparts and returned to profitability in the second quarter, posting a net profit of €71m on Wednesday, down from €1.92bn a year earlier.
CDS report: Floored rally?
The cost of buying protection against default on investment-grade bonds in Europe continued to fall early on Wednesday despite a slight drop in the continent’s main equity markets.
The flagship Markit iTraxx Europe,