gregmankiw.blogspot.com - 1/14/2009
—
Greg Ip reports : Thanks to the advent of credit derivatives -- financial contracts that allow investors to speculate on or protect against default -- we can now observe how likely global markets think it is that Uncle Sam will renege on America's mounting debts. Last week, markets pegged the ...
derivativedribble.wordpress.com - 1/15/2009
—
derivativedribble.wordpress.com —
Imps and Impetus In this article, I will
give a few explanations as to why credit default...
swaps, Satan’s financial tool of choice, exist. That Which I Do Not Understand Must Be Evil There are formal rules of logic which distinguish between sound ...
(more)
Why Credit Default Swaps?
bespokeinvest.typepad.com - 1/10/2009
—
bespokeinvest.typepad.com —
While default risk has dropped dramatically for the
financial companies listed below, it's still interesting to see...
how the firms compare with each other on the CDS front. Below we highlight current credit default swap prices for 24 financial firms ...
(more)
Financial Company Default Risk
ft.com - 1/19/2009
—
ft.com —
What if one of the member states of
the eurozone were to default on its debt? On...
the occasion of the euro’s 10th birthday, this has become the most frequently asked question about the single currency zone. The probability of a default is low but ...
(more)
FT.com / Columnists / Wolfgang Munchau - ‘What if’ ...
Comments
Blog Reactions
One reason why the Obama stimulus plan isn't larger
Marginal Revolution —
... . (How long will the liquidity trap last anyway?) And Greg Ip writes: "Last
week, markets pegged the probability of a U.S. default at 6 percent
over the next 10 years, compared with just 1 percent a year ago." ...
Bond Bubble and Citigroup
Short-Term Trading —
On-return free risks and the bond bubble the wild card in all this is China FT Citi splitting into two after $8.3 billion loss Results come in far worse than analysts were anticipating CNN We're Borrowing Like Mad. Can the U.S. Pay It Back? Necessary as these steps are, they raise a worry of their own Washington post Greg M In the figure you can see that treasuries are printing a likely wave b to retrace the first leg of the correction. Citigroup is simply collapsed. MACD ...
Related Content
Will the United States Default?
econlog.econlib.org 8/24/2009 — (August 22, 2009 08:25 PM, by Arnold Kling) Someone asked for my comments on the Jeffrey Rogers Hummel piece. I think that the U.S. government would enact a wealth tax rather than default on its debt. Other countries that have defaulted have not had ...
Country Default Risk
bespokeinvest.typepad.com 11/7/2008 — Yesterday we highlighted credit default swap prices for major banks and brokers around the world. Below we provide the same default risk levels for individual countries. These prices represent the cost per year to insure $10,000 of debt for five ...
Credit Default Risk Down But Still High
bespokeinvest.typepad.com 1/27/2009 — Below we highlight a chart of an index that measures the default risk of investment grade credit in the US. Throughout the credit crisis, default risk has risen sharply, although it has ticked lower since peaking in December. Any decline in default ...
Default Risk At New Highs -- Scary But Not Surprising
bespokeinvest.typepad.com 11/23/2008 — Credit default swaps that measure default risk for investment grade debt are trading at their highest levels of the bear market. Below we highlight an index that measures default risk for 125 companies with investment grade debt ratings. Just as the ...
Yes you must be in default to enter into a workout…universal default!
dtod.wordpress.com 20 days ago — One of the more ridiculous practices, but it is very true, you must be in default to engage in a workout negotiation. The banks logic being why negotiate a reduction if the borrower is current, obviously they can pay, they surmise.
Unfortunately any intelligent attempt to demonstrate through ...
Liquidity, Default, Risk
cato-unbound.org 12/8/2008 — Our fourth and final anatomist, J. Bradford DeLong, notes that "in the past two years the wealth that is the global capital stock has fallen in value from $80 trillion to $60 trillion," and lays out five reasons why this value might fluctuate. ...
Cost to buy protection against U.S. government default surges
marketwatch.com 3/10/2009 — Intraday data provided by Interactive Data Real Time Services , a division of Interactive Data Corp. and subject to terms of use . Historical and current end-of-day data provided by Interactive Data Pricing and Reference Data . More information on ...
Credit default swap fact of the day
marginalrevolution.com 9/23/2008 — Ike Brannon, where is my talk? | Main | The Lehman gift that keeps on giving Credit default swap fact of the day ...the CDS [credit default swap] positions of large US banks during 2001–06 grew at an average compounding annual rate of over 80%. ...
Default Risk Continues Its Decline
bespokeinvest.typepad.com 6/5/2009 — As the stock market continues higher, corporate default risk continues to decline. Below is a chart of the IBOX North American CDS (credit default swap) Index that looks at default risk for 125 investment grade entities. After finally topping out a ...
Follow WallStreetBlips on Twitter
