LONDON, April 16- Default insurance markets show no obvious concern at the growing risk that Greece will leave the euro zone, suggesting investors can now contemplate a future for the currency union without Athens. Default probabilities derived from credit default swaps-- seen as the purest gauge of credit risk-- have fallen this year in Italy, Spain and Portugal...» Read More
The ISDA on Friday effectively declared Argentina in default, which could trigger payments worth up to $1 billion on credit default swaps.
Aurelius, along with hedge fund Elliott Management, is firmly holding out on a debt agreement with Argentina.
Markets have frustrated expectations for rising bond yields, but some bond managers are still antsy and are looking to protect their portfolios.
The cost of insuring one-year U.S. government bonds against default rose 5 basis points to 35 bps on Wednesday, rising above the rate of insuring five-year debt.
Speculators – not welcome. That is the message that the EU hopes to send with its looming restrictions on financial bets against the creditworthiness of its members, the Financial Times reports.
After the unveiling of Libor rate-rigging practices among banks, eyes are turning to other markets, worrying that the manipulation would not be limited to Libor rates, the New York Times reports.
What did we think of European Commission President Jose Manuel Barroso’s comments last week on the UK and Europe?
Spain defaulted on its debt six times in the eighteenth century, and seven times in the nineteenth century. It escaped unscathed from the twentieth century, and (still) hasn’t defaulted in the twenty-first century.
Investors are seeking the safest investments and want to protect their portfolios from European exposure and unpredictability. These companies generate revenue entirely in the United States, and many of them pay a dividend that is substantially greater than the 10-year note.
CNBC's Rick Santell weighs in on recapitalizing Spanish banks and leveraging its toxic real estate market.
The triggering of insurance payments on Greek sovereign debt should be a "non-issue" for the markets, as they will happen in an orderly fashion, a representative of the International Swaps and Derivatives Association (ISDA) told CNBC on Monday.
Nouriel Roubini, Roubini Global Economics chairman, explains why the economic recovery is at a "tipping point." He also issues a warning for the Chinese and U.S. economies.
A group representing dealers in credit default swaps ruled that Friday's Greek bond swap constitutes a "credit event" that entitles holders of Greek CDS to compensation.
Charles Dallara, who represented bond holders in the Greek debt talks, told CNBC Friday he doesn’t expect other troubled EU countries such as Italy, Portugal and Ireland to need a similar bond swap.
Thursday is the deadline for the Greek bond swap.
It's been a tough week for the euro, and this strategist has a plan to trade on the troubles.
The International Swaps and Derivatives Association, which represents leading delaers in credit default swaps, meets on Thursday to decide whether the Greek debt swap in which investors will be forced to accept write-downs on their holdings of Greek debt constitutes a "credit event" which entitles them to compensation.
The financial system could face a test this week as industry officials debate a provision of the Greek bailout, the New York Times reports.
Greek political leaders said they had clinched a deal on economic reforms and spending cuts needed to secure a second bailout, but euro zone finance ministers demanded more measures and a parliamentary seal of approval before providing the aid.
The fall of MF Global has claimed another victim — this time it’s the credit rating of CME Group.