Posts Tagged ‘cds’

CDS And A U.S. Default: What’s The Point?

John Carney has a really smart post over at Clusterstock regarding the pricing of credit default swaps for Campbell Soup, JPMorgan and the US government. In case you haven’t been following all of this, the cost to insure credit risk on Campbell Soup and this country are essentially the same while the cost to insure […]

George Soros Holds Forth On Derivatives And Regulation

George Soros weighed in on derivatives and financial system regulation during a trip to China. He didn’t pull any punches on either subject. He has scant use for derivatives in general and believes credit default swaps are “instruments of destruction” that need to be outlawed. From Reuters: He said one financial institution that discovered to […]

The Banks Find Something Else To Hide Behind

The WSJ says that banks are shortening the terms of their revolving credits and tying the interest rate to CDS spreads. The first move makes sense, the second still shows they haven’t committed to fundamental credit analysis. Now, lenders are cutting the length of many commitments to less than a year. They are charging higher […]

MBIA Sues To Get Out Of CDS Exposure

When in doubt kick ’em when they’re down. That might as much as anything might be the rationale behind MBIA’s suit to void credit default swaps it sold to Merrill Lynch. MBIA is seeking to void half of its $5.7 billion of CDS that it sold to Merrill and recover payments made to counterparties. From […]