The gap between the official exchange rate and the rate in the swap market has widened to nearly 20%.
Widening spreads in the credit default swap market indicate heightened concern about default.
More worrisome is the potential for that action to trigger a real problems in the credit default swap market, causing true chaos.
With the swap market having so many participants, it can be relatively easy to sell your position to another party willing to take on the exposure.
Until cleared swap market rules and regulations have been adopted and implemented, the agreement sets out certain terms and conditions that market participants who enter into execution agreements may consider.
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All this high-flying adventure--plus some bad bets on Harvard's part in the interest-rate swap market that had apparently been the brainchild of former university president Lawrence Summers--created a perfect financial storm.
Cuomo has opened a number of investigations into Wall Street, including the auction-rate probes, which continue, as well as activities in the credit default swap market and other signs of alleged fraud.
Far more worryingly, this sorting of the wheat from the chaff occurred in the credit defaults swap market, which showed the perceived risk of bankruptcy ballooning for Citi and rising sharply for BoA, while JPMorgan remained more secure.
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For one thing, it is hard to know how much companies have in fact lengthened the maturity of their debts because the interest-rate swap market allows them to swap those fixed bond payments into cheaper floating debt, a popular strategy in the investment-grade market.
Quite apart from the risk that some crisis in a currency or stock or credit swap market could cause a meltdown on Wall Street, there is the risk that the public could turn against securities firms, especially those that so visibly wear multiple hats.
Swap-market participants exchange fixed rates for floating ones.
During the financial crisis, the credit default swap (CDS) market, a part of the OTC derivatives market, took center stage as difficulties in financial markets began to intensify and the counterparty risk involved in a largely bilaterally cleared market became apparent.
The producer and swap dealers categories showed these market participants lower their net short positions in gold.
FORBES: FOCUS: Speculators Continue To Trim Gold, Silver, Platinum Bullish Exposure -CFTC
The producer and swap dealer categories showed these market participants reduced gross longs and added to gross shorts, increasing their net short position.
The producer and swap dealer categories showed these market participants added to gross long positions and cut gross shorts, lowering their respective net short position.
FORBES: FOCUS: Speculators Shift to Selling In U.S. Precious Metals -CFTC
The producer and swap dealer categories showed these market participants lowered their net-short positions in gold as they both added gross longs and cut gross shorts.
FORBES: FOCUS: Speculators Continue To Trim Bullish Exposure To Metals-CFTC
The producer and swap dealer categories showed these market participants added to their net-short positions in gold, cutting back on gross longs and adding gross shorts.
FORBES: FOCUS: Short Covering, New Buying By Speculators Seen In Gold -CFTC
The producer and swap dealer categories showed these market participants cut exposure to both sides, but cut more gross long positions than gross shorts, raising their respective net-short positions.
FORBES: FOCUS: Speculators' Net-Long Position In Gold Rebounds Temporarily - CFTC
The producer and swap dealer categories showed these market participants cut from both sides of the market, but significantly cutting more gross shorts than longs, reducing their net-short positions in gold.
FORBES: FOCUS: Falling Prices Push Speculators To Cut Bullish Metals Positions -CFTC
The third plan, a debt-equity swap, arguably has the most market logic even if Mr Monti dislikes it because it would make last year's rescue package irreversible.
But sending direct mail to these lists for leads would once again mean spending money so instead I called magazines and other advertising vehicles in our target market and offered to swap our list for advertising.
Should there be a dispute in the CDS market over a Greek reprofiling, it would be resolved by the International Swap Dealers Association (ISDA), a voluntary body which governs the market.
ECONOMIST: How the credit-default market will judge a deal on Greece
Most market participants reckon that the swap will go ahead.
At a press conference Bob Dudley, BP's new boss, said that it had been impossible for BP to talk to AAR in advance of the Rosneft deal because of the market sensitivity of the share swap involved, and that BP and its partners would be headed for arbitration on the matter regardless of the court verdict.
The SEC, which laid out its plan last week for security-based swaps, wants to ensure customers trading on these platforms can request a quote from a single dealer if they so choose, while the CFTC, which oversees the rest of the market, wants to require swap users to receive prices from no fewer than five dealers at a time.
Banks have become increasingly dependent on various forms of secured borrowing, especially in what's known as the repo market, which is where banks swap bonds and other assets for loans from hedge funds and specialist parts of banks (yes there are banks at both ends of this market).
The SEC and CFTC have each proposed rules for a new type of trading venue known as a swap-execution facility that is designed to increase market transparency.
An iWatch would need to be a new market, one where people want to swap out what they wear now in exchange for something more beautiful and useful.
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In the meantime, it remains difficult for investors to survey a fund's exposure to both the market risk and the counterparty risk in a swap.
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