CDS Traders Attempting Another European Ambush

Tyler Durden's picture

Another week, another major derisking of European names. While the drop of China out of the Top 10 can only be attributed to the summer doldrums, the top countries are mimicking the World Cup Final, and are all European, amounting to over $1 billion in net notional derisked in the past week. These are Germany, Italy, Spain, Austria and the Netherlands, with Greece and Poland at 6 and 7, and Brazil, South Africa and Colombia rounding out the top 10. On the other end, by a smaller margin, the rerisking of France and Portugal amounted to just over $500 million in the past week. The most active name was Brazil with 1,109 contracts unwound or almost $10 billion in notional, even as the net change was one of derisking. It appears Europe will have no peace from CDS "speculators" testing out the ground in each and every country, until it the rolling wave of defaults finally sets in as Niall Ferguson stated earlier.

Source: DTCC

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Misean's picture

" until it the rolling wave of defaults finally sets in."

Hopefully they'll keep the camera crews away from the cleanup effort.

Sudden Debt's picture

Anybody mentioning it will get a one way ticket to Cuba never to be seen again.

plocequ1's picture

So let it be written, So let it be done.

Rusty Shorts's picture
paul says: July 4, 2010 at 2:28 pm

Afgan is an ambush …. demand immediate pullout….130,000 plus in small walled in area….breading “wmd accident”
wait for weather convection and right winds… fallout plume can be controlled for limited broadcast…or dirrectional broadcast…this grandure creates mass panic and confusion ….making way for world order to be impplimented

Hedge Jobs's picture

great post rusty!, thanks for the link, Looks like some troll junked you though.

M31Capital's picture

i cant believe we re being forced to go thru stress tests again its all too familiar.

geminiRX's picture

Just wait until we see a summer melt up in the Dow when the majority of volume is in just a few stocks.....AIG, C, FNM, FRE.


Oh wait....that was last summer. 

Gold...Bitches's picture

Yeah, but I can't wait to hear Denmark talk about 'green' shoots.

zaknick's picture

Why is Germany at the top of the list? Is it because lots more investors have lots more money in Bunds or because they think Germany is the worst risk? Must be the former.

maddy10's picture

Big Bull Excreta

Who has these big CDS positions?

not you, not me?

Major holders will be the Goldman Sachs, Deutsch Banks and the Morgans,

which were saved by these governments in first place

This is just another form of terro rism, to scare others away from europe and  keep US rates low

See through the smoke guys, 

if US can't fail becoz it has a printing press, ECB has one too- it's a race to the bottom




Overleveraged_and_Impatient's picture


However, with europes mentality to avoid inflation at all costs, we sort of have them in a chokehold there.


London Banker's picture

Pay no attention to California, Illinois, Florida and Michigan.  Ignore Fannie, Freddie and the 445 day shadow inventory of rising mortgage defaults. 

Hey, look over there!  Europe is an unsustainable basketcase!

Oh regional Indian's picture

That is exactly how it is eh?
The street magician on a grand scale. No spinning plates in the air, just sleight of hand and illusions.



Young's picture

How can one go about trading CDS?

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