triggering the CDS might even help Europe reduce the risk of contagion in the months ahead
short for credit default swap
as modifierthe lack of transparency in the CDS market has been harmful
Example sentencesExamples
Recently, it was reported that banks have started tying commercial loan interest rates to the price of a borrower's CDS.
In a disturbing new trend, international banks are creating syndicated credit facilities that "weaponise" credit default swaps (CDS) by using the trading price of a borrower's CDS to set the interest rate paid by the borrower.
Corporate bond spreads generally widened slightly, with auto bond and CDS spreads moderately wider this week.
Everything became a "crowded trade" - from equities, to junk, to converts, to CDS, to MBS, to manic homebuying.
My impression is that most CDS agreements run three to five years.
Definition of CDS in US English:
CDS
noun
triggering the CDS might even help Europe reduce the risk of contagion in the months ahead
short for credit default swap
Example sentencesExamples
My impression is that most CDS agreements run three to five years.
Recently, it was reported that banks have started tying commercial loan interest rates to the price of a borrower's CDS.
Corporate bond spreads generally widened slightly, with auto bond and CDS spreads moderately wider this week.
Everything became a "crowded trade" - from equities, to junk, to converts, to CDS, to MBS, to manic homebuying.
In a disturbing new trend, international banks are creating syndicated credit facilities that "weaponise" credit default swaps (CDS) by using the trading price of a borrower's CDS to set the interest rate paid by the borrower.