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aleablog.com - 3/16/2009
Credit Protection Madness?
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U.S. CDS and Paul Krugman : …. the people buying these contracts are crazy. A world in which the US government defaults would be a world in chaos; how likely is it that these contracts would be honored? No, they are not crazy, the contracts will be honoured: 100%, guaranteed, for a ...
US CDS above 100bps: it’s a MAD MAD MAD MAD World!
acredittrader.com - 3/16/2009
US CDS above 100bps: it’s a MAD MAD MAD MAD World!
— acredittrader.com — The recent widening in United States Credit Default Swap levels has gotten a lot of attention once... it cleared the magic 100bps level intra-day. As with any CDS-related news, you will get heated commentary in the blogosphere with a large perception of ... (more) US CDS above 100bps: it’s a MAD MAD MAD MAD World!

Comments vote down FT Alphaville found this 3/16/2009found this
wilmott.com - 3/16/2009
Credit Default Swaps ? Exercises in Surrealism
— wilmott.com — 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 ... (more) Credit Default Swaps ? Exercises in Surrealism

Comments vote down naked capitalism found this 3/16/2009found this
krugman.blogs.nytimes.com - 3/11/2009
Credit protection madness
— krugman.blogs.nytimes.com — Marketwatch reports: The cost of buying protection against the risk that the United States will default on... its mounting debt has surged in the past months, outpacing the rise in corporate-credit costs, now that the government has absorbed more ... (more) Credit protection madness
Comments vote down FT Alphaville found this 3/11/2009found this

Blog Reactions

FT Alphaville:  Sovereign CDS: It’s not (just) the economy, stupid

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Blog Reactions

Sovereign CDS: It’s not (just) the economy, stupid
FT Alphaville — ... CDS spreads should start falling, regardless of the economic conditions. Of course, there’s a strong argument to be made that we are unlikely to get a decrease in risk aversion without a significant improvement in the economy, the two are considerably - perhaps intrinsically - intertwined, but the message on sovereign CDS should be fairly clear. Put simply: It’s not (just) the economy, stupid. Related links: US CDS above 100bps: it’s a MAD MAD MAD MAD World! - A Credit Trader Credit protection madness - Alea  The mystery meaning of sovereign CDS - FT ...

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