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Latest DTCC CDS Update (Week Of August 14)
After several consecutive weeks of equity market mimicking and rerisking, the CDS market finally saw a net derisking in the week ended August 14, across virtually sectors, with the biggest action concentrated in the financials arena. Total net notional change was substantially higher than last week's -$14.5 billion, increasing to $66.1 billion, with a marked derisking in financials at $62.6
billion. Other notable derisking spaces were Consumer Services at $27.6 billion (again) and Utilities at $20 billion.
Total Gross CDS outstanding was at $26.2 trillion, a decline of $100
billion from the prior week. This consisted of $15.2 trillion in
single names, $7.9 trillion in indices and $3.1 trillion in tranches,
most of which were held by dealers once again.
In the single name category, there were no big surprises. In holding with the overall financial derisking theme, banks and financial companies made up the bulk of the Top 20 names: Credit Suisse led, with an impressive $2.7 billion in net derisking on a massive $30.8 billion increase in gross outstandings. Other financials in the group included Banco Santander, JP Morgan, Wells Fargo, Citi and MBIA. Notable derisking non-financials included Carrefour, Holcim, Rentokil, Ford, and an assortment of sovereign names including Portugal, Brazil and Italy, which seems to be a perennial contender in the weekly top derisking category.
On the rerisking side, some of the notable names were Bank of America, Starwood Hotels, Time Warner, Deutsche Bank, IBM, Caterpiller and Home Depot.
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TD, thanks for this, its very interesting. Where do you get this data if you don't mind me asking?
Robert Benmosche (AIG's new boss) from his villa in Croatia:
via Bloomberg
"we will pay pay back the government"
"this company needs to be reduced in size, it is too big for any one person to run"
"it was all the fault of the regulators"
The CDS markets is epitomising the insane states of the financial markets.
Should the banks not be bailed out by the governments money, the CDS counterparty risk would be higher than the underlying bonds.
The contengency liability of governments through the bail out is much higher than the money dibursed for stimuli plans.
On a trend basis,sorry to see the financial sphere is getting worse off.
Hopeless case
http://www.imf.org/external/np/pp/eng/2009/030609.pdf
Should one be willing to have a close look at the finest universal financial tapistry see above report.
See the contingent liabilites of public governments
See who are the most active participants in the CDS markets
Conclude without governments supports the conterparties in the CDS markets may be worse than the underlying bonds.
Wonder if really progresses are acheived and where is public money effisciently directed.
De-risking -
what a 'clever clever word-smithing'
http://www.google.com/search?hl=en&source=hp&q=de+risking&btnG=Google+Se...
thats your current useage....but i have HERE a better way to illustrate how it works -
this is from the war crimes trial at Nurnberg, Albert Spee or, Reich Minister of Armanents and War Production - this is DE-RISKING at its best, he got 10 years easy time, wrote book, was well respected for the remainder of his life till he finally got his final reward death 1 September 1981:
(on concentration camps)..."It was known in Germany that a stay in a concentration camp was an unpleasant matter. I also knew that, but i did not know any details...i assumed that there was ill-treatment in individual cases, but i did not assume that it was the rule...while i was in office, i heard only good and calming reports about the concentration camps, from official sources. It was said that the food was improved and so on and so forth"
THIS is how you pass RISK, as in the term limited liability corporation, credit default insurance, and THEN tell Congress, that THAT risk is NOW the Public's risk "TOO BIG TO FAIL"
the solution is of course SIMPLE,
1) do not allow ANYWAY to be TOO BIG to fail as AIG and others,
2) revolk, or threaten to revolk Corporate limited liability status of the entity involved and FORCE convert these entities to unlimited liability partnerships and
3) give the names, locations, and detailed profile of each living individual member of the offending Corporation to members of "the list" - these true believing self sacrificing martyrs of Islam will make the remainder of life here on earth, hell on earth for the offending criminals, no jail time, just time spent looking over their shoulders, anywhere, any time
Post Script - for, you see, THEY are the target missed - it was not the building World Trade Center, not the specific people in it, not America as such,
it was very specifically the criminals, who, like Albert Speer, pass-on the risk, criminals who use the very GOOD prospects of 'de-risking' for criminal activity, not 'legal definition',
but 'moral definition', as would fit nicely into the Islamic Law Shariah Law
Here by the way is how 'de-risking' is supposed to work http://www.mbi.org/derisking.html
THIS IS THE DEFINITION OF CAPITALISM, and it is good, make that distinction -
there really are DEVILS in soul men of 'economic violence' they are your enemy, know each one by name and remember, never forget, never forgive, never allow these enemies to enjoy the rest of their life, make it hell on earth forever for THEM
post post script
i see, once again, i post an http reference and it 'blanks out'
try this for example of how CAPITALISM really does work, a positive good - DeRisking the way it is supposed to work, financially
http://www.google.com/search?hl=en&source=hp&q=de+risking&btnG=Google+Se...
Post post post script - this is a 'honeypot' posting i will keep you posted on any possible visits i have from the secret police, under the guise of FBI