CDS

CDS

Latest DTCC CDS Update

Last week's significant net rerisking in consumer services has continued and has now spread to the basic materials and consumer goods sectors. The only sector which saw a notable derisking was financials, with $25 billion in net notional, or 5,546 contract increase. Net single-name notional did not change from last week at $1.4 trillion, however the reduction in gross single-name notional continues and has dropped by $200 billion to $14.2 trillion this week.

Latest DTCC CDS Update

Last week's significant net rerisking in consumer services has continued and has now spread to the basic materials and consumer goods sectors. The only sector which saw a notable derisking was financials, with $25 billion in net notional, or 5,546 contract increase. Net single-name notional did not change from last week at $1.4 trillion, however the reduction in gross single-name notional continues and has dropped by $200 billion to $14.2 trillion this week.

The ISDA CDS Settlement Auction is A Hidden Goldmine for Cash-Rich Accounts

When I discussed the basis trade opportunity, the conclusion was that arbitrage in the secondary (and by extension primary) market exists due to significant dislocations in liquidity. Sure, one can argue that immediate culprits for the arbitrage have to do with counterparty risk and funding costs, which makes sense, but those are merely derivatives of the liquidity disconnects between different brokers, their accounts, and any permutations thereof.

Weekly CDS Change Update Per DTCC - Technical Recommendations

New DTCC weekly change numbers released for week ended January 23. Most notable is the huge gross notional and contractual amount of full terminations of consumer services CDS. Looks like funds are fully covering overhanging shorts. As this has been the most profitable position over the past 3 months it is not too surprising. Based on this technical data, we would recommend establishing short positions in the space due to the diminishing risk of a mass squeeze.

Weekly CDS Change Update Per DTCC - Technical Recommendations

New DTCC weekly change numbers released for week ended January 23. Most notable is the huge gross notional and contractual amount of full terminations of consumer services CDS. Looks like funds are fully covering overhanging shorts. As this has been the most profitable position over the past 3 months it is not too surprising. Based on this technical data, we would recommend establishing short positions in the space due to the diminishing risk of a mass squeeze.

Weekly CDS Change Update Per DTCC

As CDS traders are aware, two months ago, or about the same time Chris Cox wanted to turn everyone that had even the remotest connection to trading CDS into soap, the DTCC started disclosing everything it knows (not all that much) about the CDS market on a weekly basis. At Zero Hedge, we are starting a weekly column that looks at the net additions and reductions, and ergo, net change in the CDS market, from both a notional and contractual point of view, based on DTCC data.

Weekly CDS Change Update Per DTCC

As CDS traders are aware, two months ago, or about the same time Chris Cox wanted to turn everyone that had even the remotest connection to trading CDS into soap, the DTCC started disclosing everything it knows (not all that much) about the CDS market on a weekly basis. At Zero Hedge, we are starting a weekly column that looks at the net additions and reductions, and ergo, net change in the CDS market, from both a notional and contractual point of view, based on DTCC data.