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Full-Text Articles in Business
China Looks To Add Credit Default Swaps, Steven D. Dolvin
China Looks To Add Credit Default Swaps, Steven D. Dolvin
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Credit Default Swaps (CDSs) enable investors to hedge the risk of bond (or other credit securities) default. Like any derivative, they essentially allow investors to transfer risk -- from hedgers to speculators (or even between hedgers or speculators with different exposures). See article here, Reuters.
Nasdaq To Acquire Ise, Steven D. Dolvin
Nasdaq To Acquire Ise, Steven D. Dolvin
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Nasdaq is set to acquire the International Securities Exchange (ISE). The combined firm will manage six exchanges, representing 38 percent of US options trading. This will surpass the CBOE, which manages about 27 percent of the option trading market. See article here, Bloomberg.
Credit Default Swaps Signal Warning, Steven D. Dolvin
Credit Default Swaps Signal Warning, Steven D. Dolvin
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Credit Default Swaps allow investors to hedge the risk of default on underlying debt, essentially acting as put options. Recently, CDS prices on the debt of banks such as Goldman Sachs and Deutsche Bank have increased in price, signaling a larger possibility of default. Many investors view CDS prices as a barometer of faith, thereby suggesting that bank stocks are poised for further declines. See article here, WSJ.