November 10 CDS Heatmap

With a half-day in credit yesterday, and the usual meltup in equities on no volume (free money, straight from the Fed, come get your free money: just buy a stock, any stock: since you can't get money anywhere else, buy, buy, buy into the stock bubble), yesterday CDS painted a gloomier picture. As the image below demonstrates, wideners outpaced tighteners. As only a few increasingly more powerless computers trade equities these days, we, as usually, warn readers to keep track of developments in the credit arena, and we are hopeful that the regulators will consider our proposition to gradually allow retail trading in CDS products (after the minimum notional is reduced substantially).

Source: Citi

Comments

[panda6]

www.traccr.com

Retail cds trading.

Also are these beta-adjusted wideners/tighteners ??

[Tyler Durden]

yes

[David449420]

Please explain how to interupt this.

Thanks.

[rigger mortice]

There's a glossary here

http://www.markit.com/cds/documentation/resource/cds_glossary.pdf

and a more in depth explanation here

http://www.markit.com/cds/documentation/resource/credit_indices_primer_july2009.pdf

on the chart blue means tighter,red wider.

hope that's of some help

[rigger mortice]

http://www.markit.com/cds/most_liquid/markit_liquid.shtml

most liquid

[Unscarred]

This article didn't get many comments, but it's still a valuable resource.  Hopefully, the lack of interaction does not keep this from becoming a regular feature on ZH.

Thanks again, Tyler.