Credit Derivatives

  • Citigroup, Credit Derivatives

    Citigroup’s Last Roman: The Short and Ugly Lifespan Of A Sneaky Financial Product

    Bloomberg new has gone especially gloomy lately. On Tuesday it was the really, really long expose on counterparty risk in credit default swaps. Today Mark Pittman follows up on variable interest entities, the ugly step child of the off-balance sheet special purpose vehicles that Enron made infamous. We wrote about these way back in February, […]

    / May 22, 2008 at 3:27 PM
  • Credit Derivatives, Moody's

    Moody’s Multi-Billion Computer Bug

    As it turns out, our robot overlords are destroying human civilization. Moody’s awarded incorrect triple-A ratings to billions of dollars worth of a type of complex debt product due to a bug in its computer models, a Financial Times investigation has discovered. Internal Moody’s documents seen by the FT show that some senior staff within […]

    / May 21, 2008 at 3:54 PM
  • Credit Derivatives

    Credit Default Swaps: The Next Subprime?

    Today’s must-read story is Bloomberg’s David Evans on counterparty risk in the credit default swap market. The credit default swap market is the focal point for a lot of fear these days. It’s lightly regulated, non-transparent and there’s thought to be lots of trading on inside information in the market. Rising defaults, particularly in riskier […]

    / May 20, 2008 at 4:29 PM
  • Banks, Bear Stearns, Credit Derivatives, Hedge Funds

    Bear Stearns Hedge Fund Fire Sale Already Under Way

    The last minute effort by Bear Stearns to rescue its High-Grade Structured Credit Strategies Enhanced Leverage Fund seems to have collapsed. Moments before midnight last night, the Wall Street Journal’s Kate Kelly reported that Merrill Lynch was going to push forward with its plan to sell at least $850 million of mortgage-related securities it seized […]

    / Jun 20, 2007 at 12:10 PM
  • Credit Derivatives, insider-trading

    Credit Default Swaps: The Land of Efficient Insider Trading?

    Is the market for credit default swaps rife with insider trading? That depends on what you mean by insider trading. Use the term in a loose sense—say defining “insider trading” as trades where one party has material nonpublic information unavailable to their trading counterparts—and the answer is clearly yes. There is a lot of that […]

    / Apr 17, 2007 at 4:20 PM
  • Credit Derivatives, insider-trading, traders

    As It Turns Out, Some CDS Trades May Be Made With Inside Information

    We cannot remember a time when there wasn’t concern about possibly widespread insider trading in the credit derivative market. Today, the Wall Street Journal is prompted to cover the story by a statement “12 trade associations for the U.S. and global financial markets” who are promising “to promote fair and competitive markets in which the […]

    / Dec 14, 2006 at 10:00 AM

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