Markets have frustrated expectations for rising bond yields, but some bond managers are still antsy and are looking to protect their portfolios.» Read More
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.
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.
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.
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.
The first mistake was to try to arrange a voluntary haircut in the first place, when the Greek government should simply have defaulted.
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.
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.
CNBC's Brian Sullivan explains how a "credit event" is determined.
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.
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.
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 finally seems to be winning the battle against its critics—and the shorts.
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.
The European Commission postponed a proposal that the credit rating of a country can be suspended, European Commissioner for Internal Market and Services Michel Barnier told CNBC.
Some of the hedge funds that made the biggest and most sophisticated bets against European sovereign debt began reversing those trades last week.
Is the news out of Europe impacting the markets rally? Insight on whether Europe's debt issues might cause investors to invest in Italian bonds now, with Rob Stein, Astor Asset Management and Jeffrey Saut, Raymond James.
Over the weekend, Gretchen Morgenson of the New York Times penned a column explaining what it was that doomed MF Global.