The global trading in Credit-default Swaps continues to slowly decline, the latest quantitative analysis from Fitch Ratings shows. Investors are pulling out of the euro zone, out of the financial sector and out of the credit markets across all sectors.
“Global CDS liquidity levels continued to trend in line with the previous two weeks – reflecting a high degree of CDS market uncertainty, particularly within Europe. A combination of market worries surrounding both the outcome of the Greece bailout and elections in the UK, as well as continued euro zone sovereign debt pressures and new banking regulations for the US financial industry continued to weigh on credit markets across all sectors,” Fitch writes.
“CDS on financial institutions and sovereigns appear to be trading with the most liquidity. Digging deeper, it is apparent that of the 25 most liquid financials, 23 are domiciled in North America with the remaining two in Europe,” the rating agency points out.
Related articles by Zemanta
- Insurers Drag Bonds to Worst Since December: Credit Markets (businessweek.com)
- Debt rating alphabet soup can spell disaster (cbc.ca)
- Credit-Rating Agencies Loom Large in Europe Crisis (abcnews.go.com)
- The euro-area rescue plan: The price of pragmatism | The Economist (linusfernandes.com)
- Inflation Will “Save” the Euro (wallstreetpit.com)
- “Trichet “Bluff” Called as ECB Joins Quantitative Easing, Bails Out Eurozone Banks” and related posts (rosemanblog.sovereignsociety.com)
- Insurers Drag Bonds Down on With Sovereign Debt: Credit Markets (businessweek.com)