Credit Derivatives Credit Default Swaps

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  • The Parthenon in Greece

    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.

  • Greek Parliament

    The financial system could face a test this week as industry officials debate a provision of the Greek bailout, the New York Times reports.

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    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.

  • Chicago Mercantile Exchange (CME) traders

    The fall of MF Global has claimed another victim — this time it’s the credit rating of CME Group.

  • france_flag_200.jpg

    The French bank Credit Agricole is planning on major changes to the way it operates in order to avoid new capital requirements being imposed by global financial regulators.

  • Mario Draghi

    Economic decision-makers are more optimistic than two months ago. The main reason is the belief that the European Central Bank, under the shrewd leadership of Mario Draghi, has eliminated the risk of a financial implosion in the euro zone. As Mark Carney, the respected governor of the Bank of Canada and  Draghi’s successor at the Financial Stability Board, remarked at the World Economic Forum in Davos: “There is not going to be a Lehman-style event in Europe. That matters." The Financial Times reports.

  • Bill Gross

    The European Central Bank won't solve the euro zone's debt crisis as long as the European Union behaves like a "dysfunctional" family, Bill Gross, Pimco founder and co-chief investment officer, told CNBC on Tuesday.

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    The first mistake was to try to arrange a voluntary haircut in the first place, when the Greek government should simply have defaulted.

  • European economic commissioner Olli Rehn at the World Economic Forum.

    A deal with private investors to swap Greece's debt to a more manageable burden is close to being concluded and the next three days are crucial, Olli Rehn, the European Union's monetary affairs commissioner, said during a debate hosted by CNBC in Davos.

  • Credit Cards

    A couple of years ago, the words “American consumer” cast a shadow over global markets. No wonder. Back in the days of the credit bubble, American consumer borrowing helped to create a crazy debt binge, the Financial Times reports.

  • New multistory apartments are build across the street from older single floor homes in western Gansu province, China.

    Shorting the credit of companies positioned to do badly from a Chinese slowdown has proved to be one of the hedge fund industry’s most successful trades of 2011. The Financial Times report.

  • Great Wall of China

    China's move this week to keep its economy afloat isn't getting the big headlines that Europe got, but it may be more significant for the world economy.  Here's why.

  • Euro bills and coins

    European finance ministers are expected to approve today a plan to leverage—or increase the firepower of—the EU rescue fund, known as the European Financial Stability Facility (EFSF).

  • Jefferies_200.jpg

    Jefferies finally seems to be winning the battle against its critics—and the shorts.

  • torn_contract.jpg

    Earlier this year, Deutsche Bank quietly decided to reduce its exposure to Italian government bonds. But it did not do that by simply selling debt; instead it achieved this partly by buying protection against sovereign default with credit derivatives contracts. The FT reports.

  • Statue and Italian Flag in front of Vittorio Emanuele monument.

    Some of the hedge funds that made the biggest and most sophisticated bets against European sovereign debt began reversing those trades last week.

  • MF Global

    Over the weekend, Gretchen Morgenson of the New York Times penned a column explaining what it was that doomed MF Global.

  • european_union_crack2_200.jpg

    The agreement on the size of the haircut on Greek debt banks will take could have serious consequences for all the so-called PIIGS according to Carl Weinberg, the chief economist at High Frequency Economics.

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    Dismay over widening fissures in the European bailout plan sent investors fleeing stocks and into the relative safety of U.S. Treasurys Tuesday.

  • Greece

    Fitch ratings agency says Greece's credit grade will remain low even after its debt load is cut as part of a European plan to fight the financial crisis.