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Keyword: cds

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  • CDC Announces First Case of MERS in U.S.

    05/02/2014 12:32:13 PM PDT · by chessplayer · 14 replies
    DC, Indiana State Dept of Health conducting investigation into first case of Middle East Respiratory Syndrome Coronavirus (MERS-CoV) in U.S., agency says in statement. CDC to hold 3pm press briefing
  • Washington & Wall Street: Too Big to Fail and the Detroit Bankruptcy

    12/30/2013 2:49:03 PM PST · by george76 · 9 replies
    Breitbart ^ | 27 Dec 2013 | Christopher Whalen
    the bogey man known as “systemic risk” to gain advantage over the other creditors . ... In order for the OTC casino to work, the derivatives contracts had to be given special priority in bankruptcy. Speculative derivative instruments such as credit default swaps (CDS), which caused the failure and government bailout of American International Group, could never exist in significant size were in not for the safe harbor from bankruptcy for derivatives created by Congress in the 1980s and 1990s. Members of Congress from both parties were paid very well for their treachery. ... The intellectual author of the “systemic...
  • Surrender Dorothy! America Survives "Catastrophic" Brink Of Default (And Markets Yawn)

    10/16/2013 3:54:42 PM PDT · by whitedog57 · 9 replies
    Confounded Interest ^ | 10/16/2013 | Anthony B. Sanders
    “Congress Set to End Fiscal Impasse as Boehner Concedes“ Sigh. So what was the reaction in financial markets from the surrender by Mitch McConnell (RINO-KY) and John Boehner (RINO-OH)? Particularly after the “terrifying crisis” that Democrats, the media and Gall Street professionals were screaming about? First, the 10 year US Treasury yield fell 6 basis points in the afternoon. Hardly an earth shattering change from the alleged “brink of default.” ust10psurr Second, US Credit Default Swaps are at 40, almost the same as Australia and New Zealand. Which, as far as I know, have NOT been on the brink of...
  • A Tale Of Two Curves: US Treasury And CDS (T-Curve Upward Sloping, CDS Downward Sloping)

    10/15/2013 10:26:46 AM PDT · by whitedog57 · 3 replies
    Confounded Interest ^ | 10/15/2013 | Anthony B. Sanders
    Class: Because of George Mason University’s screwy scheduling (no class today because Monday’s classes are now Tuesday classes because of Columbus Day), we can’t have our discussion of the impending US default. Here are two curves as of 1pm EST, the US Treasury yield curve and the US credit default swaps curve. The Treasury curve is upward sloping while the CDS curve is downward sloping. ustcdes1015E If we look at 1 month ago, we see an upward sloping CDS curve. 1moyccds And if we compare the current curves compared to President Obama’s inauguration date, we see an upward sloping CDS...
  • Pelosi Claims Republicans Sabotaging Deal, US CDS Declines, UST10 Yield Rises

    10/15/2013 8:59:31 AM PDT · by whitedog57 · 14 replies
    Confounded Interest ^ | 10/15/2013 | Anthony B. Sanders
    The rhetoric is really heating up. California Congresswomen Nancy Pelosi (she of “You have to pass the bill to find out what’s in it” fame) is throwing around the world “sabotage” concerning any disagreement with President Obama. uscds101513 And the 10 year Treasury yield rose 3 basis points. ust10101513 And, of course, President Obama nixed ANY deal. Huh. If Pelosi thinks this is sabotage and will lead the US to default, its odd that CDS prices are falling.
  • Rep. Peter King: Sen. Ted Cruz tapped into ‘dark strain in the American political psyche’

    09/26/2013 6:42:26 AM PDT · by jimbo123 · 47 replies
    Washington Times ^ | 9/26/13 | By Seth McLaughlin
    Rep. Peter T. King said Thursday that Sen. Ted Cruz is a “false leader” who is peddling a “false bill of goods” in the debate over defunding Obamacare and said Mr. Cruz, Texas Republican, has tapped into a “dark strain in the American political psyche.” -snip- “I don’t think it is possible to heal tensions with Ted Cruz,” Mr. King said on MSNBC’s “Morning Joe.”
  • Think Cyprus can't happen here? It already did.

    03/17/2013 8:42:48 AM PDT · by wcvarones · 20 replies
    W.C. Varones ^ | 3/17/2013 | W.C. Varones
    There's two bulls standing on top of a mountain. The younger one says to the older one: "Hey pop, let's say we run down there and f*** one of them cows". The older one says: "No son. Lets walk down and f*** 'em all".                           - Robert Duvall in ColorsThe world was shocked this weekend to learn that the European Union would fund the bailout of Cyprus by confiscating the assets of ordinary bank account holders.  Core Europeans and Americans no doubt comforted themselves that such a...
  • UK Downgrade Leads to a LOWER Yield Curve and CDS Prices

    03/04/2013 4:18:23 PM PST · by whitedog57 · 1 replies
    Confounded Interest ^ | 03/04/2013 | Anthony B. Sanders
    Yes, on February 22nd Moody’s lowered the bond rating for UK debt from AAA to Aa1. The result between February 22nd and today? The yield curve for UK sovereign bonds has fallen. I compare the US Treasury yield curve over the same time period with the UK Sovereign curve. The US yield curve shows a much smaller decline which, of course, was not downgraded. Yet. The UK 5 year credit default swaps (CDS) has fallen from 51 on February 21st to 47.30 on March 1st. If you look at the time distribution of UK sovereign debt, they have a big...
  • Six Men Charged With Terror Offences

    09/25/2011 11:24:01 PM PDT · by Cindy · 13 replies - SKY NEWS ^ | 6:18am UK, Monday September 26, 2011 | David Crabtree, Midlands Correspondent
    SNIPPET: "A seventh man, aged 20, was arrested on Thursday and continues to be questioned." SNIPPET: "Irfan Nasser, 30, from Sparkhill, and Irfan Khalid, 26, from Sparkbrook, are accused of travelling to Pakistan for terrorism training, including bomb making, and weapons and poison making; as well making a martyrdom video and planning a bombing campaign. Ashik Ali, 26, from Balsall Heath, and Rahi Ahmed, 25, from Moseley, face charges related to planning a bombing campaign in the UK, including constructing a home-made explosive device for terrorist acts and stating an intention to be suicide bombers. Two other suspects - Bahader...
  • "The Shape Of The Next Crisis" - A Preview By Elliott's Paul Singer

    12/09/2012 7:08:44 PM PST · by Perdogg · 5 replies
    Transcribed from a speech given by Paul Singer of Elliott Management Investing is an art, more so than a science. And for me, what I get paid for is managing the “dark art,” if you will, of risk management and trying to be a visionary and having a dark vision at all times about what can go wrong. It’s a particularly fruitful and impactful time to be thinking about risk management and the thing I want talk about today is what I’ve described as “The Shape of the Next Crisis.” That doesn’t mean we’re going to be talking about the...

    03/09/2012 12:03:07 PM PST · by blam · 32 replies · 1+ views
    TBI ^ | 3-9-2012 | Simon Foxman
    IT'S OFFICIAL: ISDA TRIGGERS GREEK CDS IN UNANIMOUS DECISION Simone FoxmanMarch 9, 2012 It's for real this time. The International Swaps and Derivatives Association determined today that Greece's bond swap has triggered a credit event. That will lead to payouts of credit default swaps—essentially, securities contracts on holdings of Greek bonds—that investors purchased to hedge against the risk of holding Greek sovereign debt. An auction related to outstanding CDS transactions will be held on March 19. The committee asks that any investor wanting to participate in the auction notify ISDA immediately. Provocation of a credit event has been a contentious...
  • The Greek Bailout, the CDS Market, and the End of the World

    03/02/2012 4:47:55 PM PST · by blam · 36 replies
    TMO ^ | 3-2-2012 | Shah Gilani - Money Morning
    The Greek Bailout, the CDS Market, and the End of the World Interest-Rates / Eurozone Debt Crisis Mar 02, 2012 - 08:28 AM By: Money Morning Shah Gilani writes: A not-so-funny thing happened on the way to the latest Greek bailout. The terms and conditions of the bond swap Greece agreed to before getting another handout constitutes a theoretical default - but not a technical default. That's not funny to CDS holders. Greece hasn't defaulted (so far), but some of the buyers of credit default swaps, basically insurance policies that pay off if there is a default, claim the terms...
  • The Incurable European Mess

    11/01/2011 2:34:12 PM PDT · by Razzz42 · 4 replies
    Jim Sinclair's Mineset ^ | 11.1.2011 | Jim Sinclair
    Gold is headed into the $2000s. The mess in Europe is incurable and can only be damage controlled by QE. MF Global got busted because credit default swaps did not work. MF Global had their Greek and Euro bond position covered by credit default swaps that they thought would protect them. SURPRISE! They did not work because the Greek situation of a 50% haircut was given another name than “default” by a select group of Banksters and related parties. 97% of all credit default swaps written are carried by the major US banks. That means 97% of all the credit...
  • NY investigates banks' role in financial crisis

    05/18/2011 11:26:22 AM PDT · by BuckeyeTexan · 16 replies ^ | 05/17/2011 | Staff
    ALBANY, NY — New York Attorney General Eric Schneiderman is seeking records from three major Wall Street banks as part of a broad investigation into the mortgage crisis that fueled the recession, an official familiar with the issue said today. Schneiderman is meeting with representatives of the Bank of America, Morgan Stanley and Goldman Sachs, according to the official, who spoke to The Associated Press on condition of anonymity. Those meetings are expected to focus on mortgage securities operations during the boom on Wall Street that ultimately cost banks billions of dollars. The official said securitization of those mortgages would...
  • Art Death/Heart Death

    04/02/2011 2:30:32 AM PDT · by Scanian · 4 replies
    The American Thinker ^ | April 02, 2011 | Matt Patterson
    The Analogue Counter-Revolution, Part 6 Part 1: Step Away from the Computer Part 2: iPad, Therefore I Am Part 3: Life between the Cracks Part 4: The Tyranny of Google Part 5: Digital Dark Age Ahead? Bach is singing. Well, from his grave at least. A local Bach Society presented its annual concert recently, a fine affair featuring selections from several composers, including Bach and Beethoven. The setting at the small chapel was perfect, and the musicians were first rate. Yet, the concert was only an hour long. Since half a dozen selections were featured, most ran only a few...
  • 61% Underfunded Illinois Teachers Pension Fund Goes For Broke,...By Selling Billions In CDS

    06/14/2010 5:43:39 PM PDT · by TigerLikesRooster · 17 replies · 935+ views
    Zero Hedge ^ | 06/14/10 | Tyler Durden
    61% Underfunded Illinois Teachers Pension Fund Goes For Broke, Becomes Next AIG-In-Waiting By Selling Billions In CDS Submitted by Tyler Durden on 06/14/2010 14:47 -0500 “If you were to have faxed me this balance sheet and asked me to guess who it belonged to, I would have guessed, Citadel, Magnetar or even a proprietary trading desk at a bank.” So begins a story by Alexandra Harris of the Medill Journalism school at Northwestern, which, however, does not focus on some exotic product-specialized hedge fund, or some discount window (taxpayer capital) backed prop desk (hedge fund) at a TBTF bank, but...
  • BP CDS Blow Through The Roof As Investors Prepare For The Worst

    06/10/2010 6:20:05 AM PDT · by blam · 8 replies · 49+ views
    The Business Insider ^ | 6-10-2010 | Gregory White
    BP CDS Blow Through The Roof As Investors Prepare For The Worst Gregory White Jun. 10, 2010, 8:51 AM BP's market cap has been halved by the fallout from the Deepwater Horizon oil spill, but the company's debt is also bearing the burden of the Gulf of Mexico disaster. The spike in quote volume and spread level on BP's CDS is shocking. From CMA Datavision: Oddly, it looks something like this:[snip]
  • Bonfire of the Loopholes - The financial-reform bill will do its part to save the economy—by...

    05/24/2010 8:43:29 PM PDT · by neverdem · 241+ views
    Newsweek ^ | May 21, 2010 | Michael Hirsh
    The financial-reform bill will do its part to save the economy—by creating jobs for accountants and lawyers. President Obama and leading Democrats are calling the "Restoring American Financial Stability Act of 2010" the greatest overhaul of Wall Street since the Great Depression. And that may well be true. But judging from the many loopholes in the legislation—with more to come as the banks maneuver stealthily to tweak the final product in conference—the new bill might be better termed "the Accountants' and Lawyers' Welfare Act of 2010." The bottom line is that despite the blizzard of amendments and provisions added—including some...
  • Spanish Bank CDS Blow Out, Execs Rush To Contain The Damage

    05/07/2010 10:01:47 AM PDT · by blam · 7 replies · 468+ views
    The Business Insider ^ | Vincent Fernando, CFA
    Spanish Bank CDS Blow Out, Execs Rush To Contain The Damage Vincent Fernando, CFA May. 7, 2010, 12:29 PM The cost of credit protection for Spanish banks soared yesterday. According to, Spanish bank BBVA Group's spread rose to 242.6 basis points (bp) compared to 221.5 the day before. Banco Santander's credit spread went from 207.3bp to 228.7bp at the same time. It's now at 250 according to CMA. The CDS referencing Spanish sovereign debt also rose to 264.3bp from 229.7bp, though it has eased back to 260 now. Rising spreads translate into rising funding costs, which Spanish bankers will...
  • Euro Bank CDS Go Vertical

    05/06/2010 6:42:41 AM PDT · by blam · 6 replies · 335+ views
    The Business Insider ^ | 5-6-2010 | Gregory White
    Euro Bank CDS Go Vertical Gregory White May. 6, 2010, 9:28 AM Major European banks are feeling the pressure from the Greek crisis and starting to show significant signs of market worry in their CDS. BNP Paribas, which has seen its CDS dramatically rise throughout April, announced $6.4 billion in exposure to the Greek market this morning. From CMA Datavision: Non-German European auto makers have seen their CDS spreads widen as well, with the Italian giant Fiat and French manufacturer Renault showing dramatic increases. From CMA Datavision: Airlines, which have been put under stress by the profit-sucking Iceland volcano ash...
  • Credit default swaps on trial

    04/23/2010 6:18:01 PM PDT · by neverdem · 8 replies · 232+ views
    TODAY'S ZAMAN ^ | 20 April 2010 | LUIGI ZINGALES
    CHICAGO -- The lawsuit filed by the US Securities and Exchange Commission against Goldman Sachs for securities fraud, charging the bank with misrepresenting the way a collateralized debt obligations (CDO) had been formed, has revived public disgust at credit default swaps (CDS), the instrument used to bet against these CDOs. Before the 2008 financial crisis, CDSs were an esoteric product, known only to a restricted number of sophisticated investors and specialized academics. Today, they are a household name, synonymous with unruly speculation, boundless greed, and, ultimately, systemic instability. Indeed, CDSs are blamed as one of the main causes of the...
  • [Credit Default] Swaps Come Under Fire

    03/09/2010 7:17:57 PM PST · by UAConservative · 2 replies · 305+ views
    Wall Street Journal ^ | March 9, 2010 | Stephen Fidler, Gregory Zuckerman, and Brian Baskin
    <p>International momentum is building for stricter oversight of derivatives trading, as a top U.S. regulator recommended new limits on credit-default swaps and European leaders pushed for a ban on speculative bets against government debt following recent financial turmoil in Greece.</p>
  • Banks Bet Greece Defaults on Debt They Helped Hide

    02/24/2010 11:32:07 PM PST · by TigerLikesRooster · 6 replies · 2,289+ views
    NYT ^ | 02/25/10 | NELSON D. SCHWARTZ and ERIC DASH
    February 25, 2010 Banks Bet Greece Defaults on Debt They Helped Hide By NELSON D. SCHWARTZ and ERIC DASH Bets by some of the same banks that helped Greece shroud its mounting debts may actually now be pushing the nation closer to the brink of financial ruin. Echoing the kind of trades that nearly toppled the American International Group, the increasingly popular insurance against the risk of a Greek default is making it harder for Athens to raise the money it needs to pay its bills, according to traders and money managers. These contracts, known as credit-default swaps, effectively let...
  • What Citigroup knows that you don't

    02/16/2010 12:46:22 PM PST · by FromLori · 10 replies · 1,129+ views
    Market Watch ^ | 2/16/10 | David Weidner
    Questions of the day: Would you buy a round-trip ticket on an airplane prone to crashes? How about a car with a history of serious brake problems? Interested in a TV that works great, except for the picture? If you answered yes to any of those, do I have an investment opportunity for you
  • Dubai CDS Hits 652, Ploughs Through November Highs As Gold Jumps On Greek FinMin Headlines

    02/15/2010 3:06:11 PM PST · by Cheap_Hessian · 3 replies · 362+ views
    ZeroHedge Blog ^ | February 15, 2010 | Tyler Durden
    This is where Jim Cramer (and every sell side analyst) comes out and tells us all this is just the market exaggerating stuff and what not. Oh, and gold being up 1% as a fiat currency alternative is completely irrelevant to anything. In other, actually relevant, news, the Greek Finance Minister is providing the usual share of cheerful Monday morning headlines. As Emperor Palpatine would say, the chaos in Europe is now complete. 08:13 02/15 GREECE FIN MIN: WE ARE IN A TERRIBLE MESS 08:24 02/15 GREECE FIN MIN: GREECE IS BEING PUSHED TOWARDS THE EDGE
  • Greek PM Papandreou Calls EU Plans 'Timid' [EU's Oliver Twist "Please Sir, May Have I Some More"!]

    02/12/2010 10:46:34 PM PST · by Steelfish · 4 replies · 288+ views
    BBCNews ^ | February 12, 2010
    Greek PM Papandreou Calls EU Plans 'Timid' Greek Prime Minister George Papandreou has criticised the European Union's response to the country's financial crisis as timid and too slow. Mr Papandreou told cabinet members at a televised meeting in Athens that the EU lacked coordination and undermined Greece's credibility. At a summit in Brussels on Thursday, the EU offered Greece its backing but gave no details of any plans to help. Greece's debt crisis has put pressure on the euro, causing it to lose value. Speaking on his return from Brussels, Mr Papandreou said that while Greece had received a statement...
  • Dubai debt concerns re-emerge(its CDS blew up from 592 to 630 overnight

    02/12/2010 6:37:08 PM PST · by TigerLikesRooster · 6 replies · 402+ views
    Business Insider ^ | 02/12/10 | Alistair Barr
    Feb. 12, 2010, 4:43 p.m. EST Dubai debt concerns re-emerge Cost of protection against Dubai default back near November high By Alistair Barr, MarketWatch SAN FRANCISCO (MarketWatch) -- Dubai debt concerns re-emerged Friday as the cost of protection against a default by the Persian Gulf emirate climbed to the highest level since November, according to data provider Markit. The price of credit default swaps on Dubai government debt jumped to 630 basis points on Friday, up from 592 on Thursday, Markit data show. These CDS prices were last above the 630-point mark on Nov. 27, when they traded at 634...
  • 7 US States That Are Worse Off Than Greece, Portugal, Ireland, And Spain

    02/05/2010 11:56:08 AM PST · by blam · 15 replies · 1,393+ views
    The Business Insider ^ | 2-5-2010 | Gregor MacDonald
    7 US States That Are Worse Off Than Greece, Portugal, Ireland, And Spain Gregor MacDonald Feb. 5, 2010, 1:56 PM The inevitable coming of the sovereign debt panic finally engulfed Europe this week as the derisively (or perhaps affectionately) named PIGS spilled their slop on the continent. But Portugal, Ireland, Greece, and Spain are hardly worthy of so much attention. In truth, they are little more than the currently favored proxies among the leveraged speculator community (cough) for the larger problem of all sovereign debt. Indeed, the credit default swaps on these smaller European satellite states were not alone this...
  • Traders Aggressively Buying Credit Default Swap Protection Against Sovereign Debt Defaults

    01/27/2010 5:26:18 AM PST · by blam · 12 replies · 508+ views
    The Business Insider ^ | 1-27-2010 | Vincent Fernando
    Traders Aggressively Buying Credit Default Swap Protection Against Sovereign Debt Defaults Vincent Fernando Jan. 27, 2010, 4:55 AM Credit default swap (CDS) protection buying against sovereign debt default has spiked to five times the level of similar protection bought for corporate bonds, as the potential for a wave of sovereign debt defaults intensifies. CDS notional amounts for 54 governments around the world jumped 14.2% since October 9th 2009 according to Depository Trust & Clearing Corp. Outstanding CDS amounts for all other kinds of debt only rose 2.6% over the same period. Demand for default protection has been particularly strong for...
  • The Other Plot to Wreck America (Frank Rich finally buys a clue about Wall Street bankers.)

    01/10/2010 12:27:08 PM PST · by neverdem · 33 replies · 2,056+ views
    NY Times ^ | January 10, 2010 | By FRANK RICH
    THERE may not be a person in America without a strong opinion about what coulda, shoulda been done to prevent the underwear bomber from boarding that Christmas flight to Detroit. In the years since 9/11, we’ve all become counterterrorists. But in the 16 months since that other calamity in downtown New York — the crash precipitated by the 9/15 failure of Lehman Brothers — most of us are still ignorant about what Warren Buffett called the “financial weapons of mass destruction” that wrecked our economy... --snip-- As Paul Volcker, the regrettably powerless chairman of Obama’s Economic Recovery Advisory Board, said...

    12/31/2009 4:35:15 PM PST · by Cindy · 10 replies · 515+ views
    INTERNET ^ | December 31, 2009 | Aaron Weisburd
    31 December 2009 “LIKE DEJA VU ALL OVER AGAIN” SNIPPET: “There is overlap in space if not in time between NW 253 bomber Abdulmutallab and various unsavory characters and websites. Perhaps it’s just a case of like-minded people moving through similar places at similar times in their lives, but then again, maybe Abdulmutallab came into contact with some of these people, particularly in what appears to be his critical period of radicalization in London circa 2005-2007. At this point all I have are suspicions and some interesting data points to share.”
  • Ambac Faces 99% Chance of Default as Deadline Looms, Swaps Show(LINK ONLY)

    11/17/2009 1:31:43 AM PST · by TigerLikesRooster · 5 replies · 528+ views
    Ambac Faces 99% Chance of Default as Deadline Looms, Swaps Show
  • David Einhorn's Attack On CDS---$26.5 trillion (gross notional) CDS market is under siege.

    11/08/2009 4:35:23 AM PST · by dennisw · 22 replies · 1,015+ views
    .zerohedge ^ | 11/07/2009 13:46 -0500 | Tyler Durden on
    The $26.5 trillion (gross notional) CDS market is under siege. Or such is the latest news from the formerly pervasive (ab)user of CDS trading strategies, David Einhorn. In an op-ed in the FT, Einhorn states "I think that trying to make safer credit default swaps is like trying to make safer asbestos,” he writes in a recent letter to investors, adding that CDSs create “large, correlated and asymmetrical risks” having “scared the authorities into spending hundreds of billions of taxpayer money to prevent speculators who made bad bets from having to pay." His full opinion can be found here,...
  • New York Fed’s Secret Choice to Pay for Swaps Hits Taxpayers (link only)

    10/27/2009 10:23:03 AM PDT · by TigerLikesRooster · 7 replies · 444+ views
  • Citi sues Morgan Stanley over CDS, claims $245 mln

    09/26/2009 7:36:58 PM PDT · by TigerLikesRooster · 6 replies · 496+ views
    Reuters ^ | 09/26/09
    Citi sues Morgan Stanley over CDS, claims $245 mln Sat Sep 26, 2009 3:35am BST NEW YORK, Sept 25 (Reuters) - Citigroup Inc (C.N: Quote, Profile, Research) sued Morgan Stanley (MS.N: Quote, Profile, Research) on Friday for breach of contract, saying the Wall Street firm owed it $245.4 million for protection it bought on a loan. Citibank bought a credit default swap (CDS) from Morgan Stanley & Co International in 2006 on a $366 million revolving credit facility it provided to an issuer of collateralized debt obligations (CDO), according to the complaint filed in U.S. District Court in Manhattan. The...
  • Should the Fed Get Into the CDS Business? (WHAT??)

    08/22/2009 7:14:50 AM PDT · by TigerLikesRooster · 24 replies · 631+ views
    WSJ ^ | 08/21/09 | Jon Hilsenrath
    Should the Fed Get Into the CDS Business? Exotic financial instruments known as credit default swaps played a central role in the crisis that brought the U.S. economy to its knees last year. Ricardo Caballero and Pablo Kurlat, two M.I.T. economists, have an audacious response: The Federal Reserve itself should get into the credit default swap business to prevent the next crisis. Their proposal will be debated today at the Fed’s annual Jackson Hole, Wyo., symposium by the world’s leading central bankers and economists. Harvard’s Kenneth Rogoff, former chief International Monetary Fund economist, will present a critique. A credit default...
  • California as National Trend Setter? In This Case, Let's Hope Not

    08/09/2009 5:10:59 AM PDT · by TigerLikesRooster · 11 replies · 718+ views
    Seeking Alpha ^ | 08/09/09
    Link Only (Bloomberg excerpts contained)
  • Whalen: Make Derivative Pricing Models Public

    07/14/2009 9:34:09 AM PDT · by WashingtonSource · 2 replies · 169+ views
    Mind Over Market ^ | July 13, 2009 | Robert Stowe England
    Congress should compel over-the-counter (OTC) derivatives dealers to publish monthly the pricing models they use or register the models with the Securities and Exchange Commission, says risk analyst Christopher Whalen. Disclosure will reduce the complexity of derivatives. Even so, an outright ban is preferable to eliminate the "horrible damage" they have inflicted on the global financial system, Whalen contends in his written answers to 33 questions submitted by a Senate panel following his testimony last month. Mind Over Market has obtained a copy of Whalen's letter containing the Senators' questions and his answers, and has published the entire text below....
  • Tiny Texas Brokerage Crushes Wall Street With Daring Mortgage Trade

    06/11/2009 7:09:27 PM PDT · by FromLori · 43 replies · 2,085+ views
    Today’s Wall Street Journal carries the amazing story of a small Texas brokerage that pulled a fast one on some of the biggest banks in the world. The short version goes like this. Amherst, the Texas brokerage, and others sold hundreds of millions of dollars of credit default swaps on bonds back by $29 million of subprime mortgages to JP Morgan, Goldman, UBS RBS and other banking giants. The banks paid steeply for the swaps—up to 90 cents for every dollar of insurance—but thought it was easy money. After all, these were Lehman packaged California subprime loans made in 2005,...
  • Kabuki on the Potomac: Reforming Credit Default Swaps and OTC Derivatives

    05/18/2009 8:39:17 PM PDT · by TigerLikesRooster · 4 replies · 275+ views
    Kabuki on the Potomac: Reforming Credit Default Swaps and OTC Derivatives May 18, 2009 /snip We gratefully acknowledge contributions for today's comment from members of the Herbert Gold Society, an informal group of current and former employees of the U.S. Treasury and the Federal Reserve System. Despite bringing the world economy to its knees and costing taxpayers hundreds of billions of dollars in bailouts for events such as Bear Stearns, Lehman Brothers and American International Group (NYSE:AIG), the Masters of the Universe who run the largest Wall Street firms of have learned not a thing when it comes to credit...
  • Credit insurance hampers GM restructuring

    05/11/2009 9:38:04 PM PDT · by TigerLikesRooster · 14 replies · 1,231+ views
    FT ^ | 05/11/09 | Henny Sender
    Credit insurance hampers GM restructuring By Henny Sender in New York Published: May 11 2009 23:33 | Last updated: May 11 2009 23:33 Hedge funds and other investors stand to make billions of dollars on credit insurance contracts if GM de­clares bankruptcy, a prospect that is complicating efforts to persuade creditors to agree to a restructuring plan for the automaker, analysts say. Holders of $27bn in GM bonds have until June 1 to decide whether to swap their debt for a 10 per cent equity stake in the company as part of an offer that would give the US government...
  • CDS blamed for role in bankruptcy filings

    04/17/2009 12:24:20 AM PDT · by TigerLikesRooster · 4 replies · 394+ views
    FT ^ | 04/17/09 | Henny Sender
    CDS blamed for role in bankruptcy filings By Henny Sender in New York Published: April 17 2009 00:57 | Last updated: April 17 2009 00:57 Credit default swaps, the derivatives instruments that have figured prominently in the global financial crisis, are now being blamed for playing a role in two bankruptcy filings this week. Bankers and lawyers involved in restructuring efforts say they are concerned some lenders to troubled companies, such as newsprint producer AbitibiBowater and mall owner General Growth Properties, stand to benefit from a default because they also hold default swaps, which entitle them to payments in such...
  • Where's My Pitchfork?

    04/04/2009 6:35:53 AM PDT · by TigerLikesRooster · 25 replies · 876+ views
    Market Ticker ^ | 04/03/09 | Karl Denninger
    Where's My Pitchfork? President Obama was said to have recently had a meeting in which he said: But President Barack Obama wasn’t in a mood to hear them out. He stopped the conversation, and offered a blunt reminder of the public’s reaction to such explanations. “Be careful how you make those statements, gentlemen. The public isn’t buying that.” “My administration,” the president added, “is the only thing between you and the pitchforks.” Yes, Mr. President, you are. But let's be blunt - should your administration be exempt from the pitchforks? Let's set the wayback machine to December 29th, 2007. On...
  • AIG was responsible for the banks January and February profitability

    03/29/2009 5:38:34 PM PDT · by oldtimer2 · 28 replies · 1,341+ views
    Zero Hedge blog ^ | March 29, 2009 | Tyler Durden
    Exclusive: AIG Was Responsible For The Banks' January & February Profitability Posted by Tyler Durden at 6:35 PM Zero Hedge is rarely speechless, but after receiving this email from a correlation desk trader, we simply had to hold a moment of silence for the phenomenal scam that continues unabated in the financial markets, and now has the full oversight and blessing of the U.S. government, which in turns keeps on duping U.S. taxpayers into believing everything is good. I present the insider perspective of trader Lou (who wishes to remain anonymous) in its entirety: "AIG-FP accumulated thousands of trades over...
  • Geithner unwilling to ban credit default swaps [naked swaps]

    03/26/2009 6:35:56 PM PDT · by rabscuttle385 · 84 replies · 1,918+ views
    The Hill, Washington, DC ^ | 2009-03-26 | Michael O'Brien
    Treasury Secretary Tim Geithner said that he likely will not ban one of the key financial instruments that led to the collapse of AIG and a number of other institutions. "My own sense is that banning naked default swaps isn't necessary and wouldn't help fundamentally in this case," Geithner told Rep. Joe Donnelly (D-Ind.) when asked about the value of the instrument. Credit default swaps were insurance policies offered by AIG and other companies on bundles of toxic assets, allowed under the assumption that increasing property values would fuel increased value for mortgages. Under those assumptions, the credit default swaps...
  • “Concentrations of risk, plagued with deadly correlations”

    03/18/2009 10:30:58 AM PDT · by TigerLikesRooster · 2 replies · 506+ views
    Follow the Money ^ | 03/17/09 | Brad Setster
    “Concentrations of risk, plagued with deadly correlations” Posted on Tuesday, March 17th, 2009 By bsetser The FT’s Gillian Tett makes a simple but important point: AIG’s role in the credit default swap market meant that a lot of risk that the bank regulators thought had been dispersed into many strong hands ended up in a single weak hand. Tett: /snip But the AIG list shows what the fatal flaw in that rhetoric was. On paper, banks ranging from Deutsche Bank to Société Générale to Merrill Lynch have been shedding credit risks on mortgage loans, and much else. Unfortunately, most of...
  • Credit Default Swaps – Exercises in Surrealism

    03/16/2009 10:01:11 AM PDT · by TigerLikesRooster · 5 replies · 334+ views
    Fear & Loathing in Financial Products ^ | 03/16/09 | Satyajit Das
    Satyajit Das's Blog - Fear & Loathing in Financial Products Credit Default Swaps – Exercises in Surrealism Posted At : March 16, 2009 5:35 AM | Posted By : Satyajit Das Related Categories: Derivatives At the quantum level, the laws of classical physics alter in intriguing ways. In financial markets, at the derivative level, the rules of finance also operate differently. The derivative industry’s indefatigable advocacy of credit default swaps (“CDS”) centers on the fact that contracts related to recent defaults settled and the overall net settlement amounts were small. Closer scrutiny suggests causes for caution. The CDS contract is...
  • More GE (IMPORTANT) (CDS: out-of-control wrecking ball?)

    03/06/2009 3:20:17 AM PST · by TigerLikesRooster · 25 replies · 664+ views
    Market Ticker ^ | 03/05/09 | Karl Denninger
    More GE (IMPORTANT) Off the wires, no link. "DJ reports GE Capital credit default swaps worsen even as GE released a statement emphasizing its strong cash position. The CDS are most recently quoted at 17.5 points up front, from 16.5 points up front earlier today, according to Phoenix Partners Group. That means investors must pay $1.75 mln up front, plus a $500,000 annual fee, to protect $10 mln of GECC senior bonds against default for five years." That means the first year cost is $1.75 + $500k, or $2.25 million. That's 22.5% first year cost to insure $10 million against...
  • "Catastrophe of Biblical proportions"....(President Barack Hussein Obama)

    03/04/2009 7:00:18 AM PST · by IrishMike · 18 replies · 1,277+ views
    Crunchy Con ^ | Tuesday March 3, 2009 | Rod Dreher
    Here in a nutshell is why I think Obama will preside over a prolonged world depression with extreme consequences for the developing world: Americans, per my Peter Pan analogy, haven't been saving. They expected their homes and other assets to appreciate instead. Now the Boomers are broke just prior to retirement and are saving as much as they can. If everyone tries to save at once, the economy shuts down and stays shut -- it has nothing to do with the credit crisis. The only way to save without shutting the economy down is to export (as the Chinese have...
  • ICE Trust Receives Approval From Federal Reserve to Clear Credit Default Swaps

    03/04/2009 7:03:59 PM PST · by TigerLikesRooster · 8 replies · 482+ views
    ICE ^ | 03/04/09
    ICE Trust Receives Approval From Federal Reserve to Clear Credit Default Swaps --ICE Expects to Complete TCC Acquisition within Week; Clearing of Existing North American CDS Indexes to Begin Thereafter NEW YORK, March 4, 2009 /PRNewswire-FirstCall via COMTEX News Network/ -- IntercontinentalExchange(R) (NYSE: ICE), a leading operator of regulated global futures exchanges and over-the-counter (OTC) markets, today announced that ICE US Trust, LLC (ICE Trust), a New York limited liability trust company, has received regulatory approval from the Board of Governors of the Federal Reserve System to become a member of the Federal Reserve System and to serve as a...