In September, when the credit crisis struck, no one wanted to own a credit default swap.
Credit default swaps on BofA added 17.7 basis points to 355 basis points earlier this afternoon.
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Many traders follow an index of credit default swaps that tracks values of subprime debt.
Greene became a billionaire by buying credit default swaps on subprime mortgage-backed bonds as housing crashed.
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The total amount of U.S. credit default swaps outstanding is low, relative to many European countries.
The higher the cost of a credit default swap, the higher the implied risk.
Credit default swaps becoming more exchange-oriented with centralized clearing perhaps even a consolidated tape.
This triggers the credit default swaps (CDS) that were written on those bonds from that bank.
Therefore, Feldstein recommends shorting the credit of JFE Steel via its credit default swaps.
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Bloomberg reports that credit default swaps on BofA reached their highest level since May 2009.
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Economic growth will help prevent another financial time bomb--credit default swaps, a form of debt insurance--from exploding.
These credit default swaps acted as hedges for trillions of dollars of credit default swaps that J.
This forced financial firms to increase collateral for credit default swaps--which meant more calls for new capital.
He later became a billionaire by buying credit default swaps on subprime mortgage-backed bonds as housing crashed.
Scandinavian countries are safe when measured by the cost to insure against default through credit default swaps.
Even when the details of credit default swaps and high yield bonds lead to fits of sudden-onset narcolepsy!
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The change in mood whipsawed European sovereign bonds and the credit default swaps to protect against their default.
Given the chance, economic growth will prevent a new time bomb--in the form of credit default swaps--from exploding.
Citadel is down 32% for the year and credit default swaps in its debt have soared in recent days.
Widening spreads in the credit default swap market indicate heightened concern about default.
Huge numbers of credit default swaps were indeed triggered but the only people who got hurt were, umm, AIG.
This week, the German Finance Ministry outlawed naked short-selling of European government bonds, credit default swaps and some stocks.
Greenberg superimposed the credit default swap guarantee business on a sound insurance underwriter.
Perhaps those memories are weighing on the minds of credit default swap traders.
There is a close correlation between yield spreads and credit default swap prices.
Leon Cooperman, chairman and CEO of Omega Advisors, says he would like to see HFTs and credit default swaps outlawed.
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That's not something many bondholders will accept, particularly since a voluntary deal won't trigger credit default swaps to offset losses.
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The Obama administration has proposed a central clearinghouse to make trading in credit default swaps, currently privately negotiated, more transparent.
If AIG had been forced to sell its credit default swaps then, Sullivan said, the price would have been artificially low.
Credit default swaps are generally traded by phone-based brokers who match buyers and sellers at large investment banks and other institutions.
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