credit default

The company did not just undertake credit insurance, but was the largest trader in the credit default swap market.

Bafin, the German regulator, said on March 8 there was no evidence speculators using credit default swaps contributed to Greece's woes.

AIG created a false sense of security via credit default swaps that was as it turned out completely unjustified by reality.

The goal was to set up a clearinghouse as well as an electronic trading system that would display prices for credit default swaps.

Ask me to explain what a credit default swap is and I'll emit an unbroken 10-minute "um" through the clueless face of a broken puppet.

Default on its $441bn exposure to credit default swaps and other derivatives would have been a global financial catastrophe.

Another irony is by playing loose with the "voluntary" nature of haircut, they may have undermined the credit default swaps market.

But I cannot understand why we are still allowing the trade in credit default swaps without ownership of the underlying securities.

The Deutsche Bank AG trader's early embrace and mastery of credit-default swaps helped catapult him to managing director at the age of 27.

The bank could then purchase the publicly traded debt of the firm at 60% of face value and deliver it to settle the credit default swap.

Want to set up a $100-million credit default swap on the bank of your choice?

The second step is to understand credit default swaps and to recognise that the CDS market offers a convenient way of shorting bonds.

Credit default swaps are derivatives that investors use to protect against, or bet on, an entity being unable to repay its debts.

On Tuesday, after the news of a possible bailout, the cost of insuring Greek debt, as measured by credit-default swaps, plunged.

Credit default swaps are being netted and torn up; banks are trying to unwind swaps and other derivatives.

Credit default swaps are the rocket fuel that turned the subprime mortgage fire into a conflagration.

In an attempt to find a scapegoat, the German government has banned all naked sovereign-credit-default swaps in Germany.

And it was compounded by the wobbliness of a new type of financial insurance known as credit default swaps, which are now unregulated .

Particularly striking was the failure of the credit default swap market to give any forewarning of the financial crisis (see chart).

Some also worry that these weakened monolines would be less able to honour credit-default swaps (CDS)[3] they had sold to the banks.

If this was a classic emerging market crisis, bonds would have dived, credit default swap spreads exploded, and the currency collapsed.

Only a small amount of data relates to credit default swaps that reference our target company (Agrium Inc. ) as the named entity.

Collateralised debt obligations rate just two mentions in the index and credit default swaps get a paragraph and a half.

I never received any pay resulting from the credit default swaps that are now losing so much money.

If companies fail en masse, what will happen to the derivatives that insure against default, known as credit-default swaps (CDS)?

Credit-default swaps were also used as a way of taking risks and are widely blamed for adding to financial-market instability.

Sherman is not well pleased about the crumbs, but imagine looking for a way to describe credit default swaps to a child.

Gains in other parts of Berkshire's derivative portfolio, including credit-default swap contracts, offset those less-severe losses.

AIG had a vast business in credit default swaps and therefore a huge exposure to a residential mortgage crisis.

Establishing a "clearing house" to net liabilities, including in credit default swaps, may also be necessary.

Present outbreak of the subprime mortgage loan crisis is a typical case of credit default contagion.

ISDA will decide if the credit-default swaps should pay out depending on whether it judges losses to be voluntary or compulsory.

"Insider trading is evidenced by the movement in share prices and credit default swaps prior to the public announcement of deals, " it says.

Likewise, the New York Times singled out the deregulation of credit default swaps as a cause of the crisis.

"So instead of having 50 different ways to do a credit default swap, you could actually buy one on an exchange. "

That change was mirrored in higher prices for credit-default swaps, a form of insurance against default (see chart).

Since the market collapsed, far fewer credit-default swaps have been issued.

Once the entire banking system had loaded up on mortgage derivatives and credit default swaps, the crisis was just waiting to happen.

Credit default swaps must be regulated and sellers must be required to hold sufficient capital.

The relationship between the price of corporate bonds and credit default swaps continues to display unusual patterns.

But that makes it sound remarkably like a credit-default swap (CDS), an instrument European politicians profess to hate.

The settling of the credit default swaps on the two mortgage giants may also be messy.

The amount of counterparty risk in the system will be reduced greatly by central clearing-houses for credit-default swaps.

We had the housing bubble and the credit default. The commodities market is another lucrative playing field [where] traders take a fee.

It is true that Rio's funding crisis has been averted; credit default swap prices are less than a quarter of this year's highs.

Some suggest replacing corporate and sovereign ratings with credit-default-swap prices, but these too can be procyclical.

That at any rate is the market view, according to the price of a credit-default swap which pays out if the borrower defaults (see chart).

Figure 2 illustrates a small portion of a sample FpML record for a credit default swap trade.

From mortgage-backed securities to credit default swaps, the international monetary system is in big trouble.

They include banks and hedge funds that have acquired credit-default swaps(CDSS), the cornerstone of the market.

Some $62 trillion of that were credit-default swaps (CDSs), whose supercharged growth continues in spite of the crunch.

Money poured into CDSs (credit default swaps), a financial device that acts as an insurance policy against defaults.

Credit-default-swap spreads on its government debt have surged to horrifying levels, signalling that investors see a high risk of default.

With China' s Bank of the current situation of credit default swaps are facing the current obstacles and put forward feasible suggestions.

Concerns over contagion have caused sovereign credit-default swap spreads to widen, and the cost of borrowing to rise.

The problem with credit default swaps, concludes Wallison, is not their financial effects but their political effects.

Credit-default swaps act like insurance, protecting bondholders in the event of a default.

But it will also be a test for the dauntingly large market for credit-default swaps (CDSs).

The investigation is not the first time the credit default swaps market has been targeted by US regulators.

A comprehensive framework of oversight for derivatives including hitherto unregulated credit default swaps.

Finally, in case of default, it gives depth analysis on corporate bond pricing under the binomial model and credit default risk.

More importantly, it is a giant in the over- the - counter derivatives market, and number one by a long way in credit - default swaps.

Some $440 billion in credit default swaps sat on the company's books before it collapsed.

Investors who buy sovereign credit default swaps against the spectre of French or Italian default are wasting their money.

That could count as a technical default and may result in a payout on credit default swaps.

A key factor that made the mortgage defaults so damaging was the growth of so-called credit-default swaps.

Mr. Cox's statement follows moves Monday by the New York Insurance Department to regulate some credit-default swaps.

The WHERE clause restricts the update to a specific credit default swap trade involving Agrium Inc.

Specifically, we want only credit default swap data, which FpML represents as an XML node that contains multiple child nodes (see Figure 2).

Credit-default-swap spreads on European bank bonds are in almost all cases higher for banks that have less capital.

By putting in doubt the viability of the sovereign credit default swap market, leaders are making the debt crisis worse.

Tenth, consolidate settlement of over-the-counter trading and credit default swaps.

Once the appropriate credit default swap data is retrieved from the database, the application can further manipulate the data as desired.

Amid head-spinning talk of trillion-dollar debt and credit-default swaps, old-fashioned farming seems reassuringly tangible.

'These cash payments to [credit-default-swap] counterparties should never have occurred, ' Mr. Greenberg said.

Credit default swaps make up the majority of the rapidly expanding $26, 000bn credit derivatives market.

One aspect of this application might need to obtain current market data about the firms referenced in credit default swap trades.

Many interest-rate swaps and credit-default swaps, now traded OTC, can be standardised.

Somehow the world ended up with $62 trillion-worth of credit-default swaps (CDSs), none of them traded on exchanges.

Prices of credit-default swaps on sovereign debt have risen sharply, suggesting that investors see growing risks of default.

As a kind of credit derivatives, credit default swap(CDS) has introduced revolutionary changes to the management of credit risks.

Otherwise known as credit default swaps (CDS), it is a contract between two parties.

Consider the situation in which a Java EE application needs to access credit default swap data from a specific trade.

Borrowing costs for big financial institutions plunged on Tuesday, as measured by credit-default swap spreads.

Mr. Paulson scored huge profits by buying credit-default swaps, a derivative investment that serves as insurance on debt.

Renewed fears about Ireland's banks and Greece's economy have pushed their credit-default swaps closer toward record levels.

Citi's credit default swaps have a market implied rating of "Baa2, " or seven notches below the bank's current "Aa1" rating.

In the periphery countries , currencies fell , interest rates rose and credit default swap rates soared .

Lord knows where this leaves us, since only He knows what a credit default swap (CDS) on a collateralized debt obligation (CDO) is worth.

According to Markit, the cost of one-year US credit default swaps, which insure against default, almost tripled in six trading days.

We feel more comfortable taking credit risk in high yield corporate bonds via index (credit default swaps) or index funds.

The financial products were made "safe" by insurance products known as credit default swaps, a credit derivative from companies such as AIG.

Credit- default swap contracts on Irish government bonds jumped 25. 5 basis points to 551 , according to data provider CMA in London .

Another weak spot is the $62 trillion market for credit-default swaps, which has given regulators nightmares since the loss of Bear Stearns.

Credit Default Swap A swap designed to transfer the credit exposure of fixed income products between parties.

Schlosstein picked out the growth of credit-default swaps, a type of derivative often used purely for speculative purposes.

The dismay of investors was quickly apparent in the market for credit-default swaps (see chart) and in the equally active market for gossip.

The situation is aggravated by the market in credit default swaps, which is biased in favour of those who speculate on failure.

When housing prices continue to fall the credit default swaps derived from them simply can't be shored up by themselves.

Mr Hendry has purchased credit-default swaps on Japanese firms that are heavy exporters to China.

The value of outstanding credit-default swaps, for instance, has climbed to a staggering $45 trillion.

To protect itself against value declines on these, Goldman wrote bets with AIG, using credit-default swaps.

CME's attempts to clear credit-default swaps (CDSs), the most reviled OTC derivatives, have proceeded fitfully.

On June 22nd a convention to standardise credit-default-swap (CDS) contracts for clearing took effect in Europe.

But thanks to credit default swaps, you can place convenient bets on the break-up of the eurozone.

Its exposure to the murky credit-default swaps market alone is a notional $441 billion, enormous by anyone's standards.

Contagion also spreads through the market for credit-default swaps.

One candidate for a leak is the credit default swaps market.

Bears could meanwhile seize on bad news to drive credit default swap spreads wider, some traders said.

By midyear, AIGFP had racked up about $25bn of cumulative losses on its credit default protection.

The prices of credit default swaps have signaled for months some downgrades of triple-A companies.

Even fewer know or care about collateralised debt obligations or credit default swaps.

Some suggest using credit-default-swap prices, but these too can exacerbate market swings.

The securities in question don't account for all of AIG's credit default swap exposure but are connected to the most troubled assets.

Interest rates and credit default premiums have soared and stock markets crashed.

Such defaults would spread losses in "credit default swaps" , which insure such debt.

All of those SIVs and credit default swaps that once generated credit are now contracting and pulling the real economy down with them.

Some countries will continue to witness increased credit default swaps.

By then the mass appeal of commercial paper and credit-default swaps may have waned .

On a deeper level, too, credit default swaps played a critical role in Lehman's demise.

Then, there were no collateralised-debt obligations or credit-default swaps.

There was a mad dash to buy up protection against Italian debt using credit default swaps.

Banks also are increasing their use of credit-default swaps as protection against their holdings of sovereign debt from shaky countries.

It includes credit-default swaps, a form of insurance that pays off if a bond goes bad.

Credit-default insurance costs on France rose further Wednesday.

In addition, strong declines in banks' share prices and large increases in banks' credit default swap (CDS) spreads were observed.

Credit default swaps started out as essentially an insurance policy.

Contortions to keep the debt deal "voluntary" (and so avoid triggering credit-default swaps) will do lasting damage to that market.

Before the financial crisis, sovereign credit-default swaps traded in single digits.

COMMENT values that begin with cd represent credit default trades.

Credit default swaps on Dubai's sovereign debt have exploded to levels higher even than Iceland's, according to CMA Datavision.

Thus, the Commodity Futures Modernisation Act of 2000 exempted credit default swaps from these laws.

Transparency and oversight must be improved in the newer, more exotic reaches of finance, such as credit-default swaps.

Prices of Argentina's credit-default swaps, a gauge of credit risk, rose to their highest-ever level.

Credit default swaps are a new frontier of leverage.

Indices of subprime loans based on credit default swaps had already hit the floor.

The SQL WHERE clause indicates that we want only results related to credit default trades.

This chapter explore those risks faced by credit default swaps and their controlment .

Any measures to curtail credit default swap trading could have a bigger impact, however.

Another target will be derivatives, such as the largely unregulated market in credit default swaps that were instrumental in AIG's demise.

Bond markets even rose, while credit default swaps on UK sovereign debt tightened 7 basis points.

So did premiums on insurance against credit default.

Credit default swaps shot up, but the level of shorting on BEA stock was actually below "normal" levels.

6By then the mass appeal of commercial paper and credit-default swaps may have waned.

The cost of insuring Portuguese sovereign debt rose 8 basis points to 562, according to CMA prices for credit-default swaps.

But what would they mean for credit default swaps (CDSs)?

These include options on a variety of asset classes, such as equity indices and credit-default-swap indices.

Nor that the enormous new markets, such as the $55 trillion global market in credit-default swaps, need more oversight.

He was partly right: the credit-default swaps market has buckled but not broken.

Again, derivatives, known as credit default swaps, are playing a part in the current trading.

A good part of the problem in the financial sector is being caused by a beastie called the credit default swap which is a derivative.

Credit default swaps on debt related to risky home loans almost collapsed A. I.

Schumer said Treasury needs to address the systemic risk of complex financial instruments such as credit-default swaps.

A five-year credit-default swap on Lehman debt now costs almost 600 basis points.

We use the same query as in Listing 3 to obtain credit default swap from DB2, so we won't repeat it here.

Some in the markets have taken fright, too: the country's credit-default swaps imply a 50% chance of default by 2015.

Credit- default swaps allowed AIG to bring in huge returns but at high risk if things went wrong, which they did.

Certainly, some financial innovations, such as credit default swaps, can cause huge downside.

That is because a default would trigger the bond-insurance contracts called credit-default swaps (CDSs).

Insuring Spanish debt became less costly too; Spain's credit-default swaps fell by 10. 5 basis points.

A US company such as AIG sold more of its credit default swaps and insurance policies outside the US than within it.

Credit default swaps on five-year Greek bonds this morning were trading at rates implying a nearly 100% chance of default by the government.

Credit default swaps led AIG to $18 billion in losses in the nine months ended June 30.

You are as blameless for these credit default swap losses as I am.

These are the infamous naked credit-default swaps.

Morgan Stanley's credit-default protection has risen nearly 17% during that time.

That is what the credit default swaps market shows: spreads on UK government bonds have drifted up again, to 70 basis points.

Yet, based on mid-2007 figures, AIG had $465bn in super-senior credit default swaps.

Until last year credit-default swaps (CDSs) were hailed as a wonder of modern finance.

A credit default swap index based on 25 European financials fell to 252. 56 bps, down nearly 19 percent from a September peak.

Credit-default swaps on Portugal rose 13 basis points to 489, and contracts on Spain rose 3. 5 basis points to 303.

These traders turn over millions of dollars in these trades every day, and credit default swaps are just one of many kinds of derivatives.

One-year U. S. credit default swaps rose to a record high 85 basis points, up 8 basis points on the day.

have private bondholders pay at least a share of the losses but without triggering default clauses and credit default swap claims;

The Research of the Short Term Price of a Credit Default Swap in a Jump Diffusion Model with Two-sided Exponentially Distributed Jump

The Game Analysis of Risky Trade of Credit Default Swap Under Asymmetric Information

absence of a spike in credit-default swaps

Asia's Bond Risk Increases, Credit-Default Swap Prices Show - Bloomberg

An Analysis on Mechanism of Risk Hedge and Evaluation for Credit Default Swaps

Modelling for Enterprise's Short-term Loan Credit Default--Based on Fisher Discriminant Principle

Downgrades can also be trigger events in financial contracts, like credit default swaps, that force money to change hands between parties;

the problem that arose with credit default swaps

Valuation of credit default swap

CHINA TO IMPLEMENT CREDIT DEFAULT SWAPS IN THE SECOND HALF OF 2010; THIS WILL CHANGE THE WAY THEY MANAGE THEIR ECONOMY

A Study on Pricing Model of Credit Default Swap Based on Jump-Diffusion Process

CDS - credit default swap

its credit-default swaps are bailed out at par;

On the Causes of Credit Default in China