Killing My CDS Softly

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.

“Average global CDS liquidity continues to reflect a high degree of CDS market uncertainty, particularly in Europe.”

Fitch Ratings

“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.

Read the full post at The Swapper.

Related:

Europe To Fight Speculators With “Secret Plan”

Will The Goldman-Case Kill The OTC Market?

Fitch: The Long-Term Goldman-Effect

Euro Area Under Massive Speculative Attack

E.U. Prepared To Set Up Own Rating Agency

Naked self-interest

ECB Makes Rating Agencies Irrelevant

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0 thoughts on “Killing My CDS Softly

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