We remarked last week that Banco Espirito Santo’s travails may test current CDS definitions, and so they did. But not in the way that we – or most market participants – expected. The Portuguese lender was split into a “good” bank… Subscribe to Read MoreAlready a member? Log in here...
The legal machinations of the CDS market are probably not the main concern of Portugal’s national government and its biggest bank. But the travails of Banco Espirito Santo (BES) are certainly capturing the attention of credit investors, not least because of its potential significance in a changing regulatory environment. BES has been under pressure since…
A company’s credit rating gets placed on review for downgrade, and its CDS spreads stage their biggest one-day rally on record? This appears like a contrarian market reaction, regardless of one’s views on the rating agencies and their performance in recent times…. Subscribe to Read MoreAlready a member? Log in here...
European banks are no strangers to unpleasant shocks. The latest came from Portugal, where Banco Espirito Santo (BES) came under pressure following news that the Espirito Santo holding company – BES’s largest shareholder – had run into financial difficulties…. Subscribe to Read MoreAlready a member? Log in here...
Credit spreads in North America and Europe have been trading in a tight range throughout July, with investors waiting to see how earnings season unfolds. US banks are not the flavour of the month,… Subscribe to Read MoreAlready a member? Log in here...
Credit spreads remain close to their recent tight levels, but the onset of earnings season could trigger a shift in sentiment…. Subscribe to Read MoreAlready a member? Log in here...
The World Cup group stages have been finalised yesterday with many surprise exits, and it appears South American nations will be dominating the second stage of the world’s largest sports event…. Subscribe to Read MoreAlready a member? Log in here...
We remarked last week that, while Argentina is among the favourites to lift the World Cup, it is the outstanding favourite to be the next sovereign to default. Events since have strengthened that assertion – the football team has made an impressive start, and the country’s CDS spreads have widened sharply…. Subscribe to Read MoreAlready
Trading volumes usually fall during the summer, but the decline may start earlier than usual this year. World Cup fever has struck the financial markets, though it has to be said the atmosphere is probably more febrile outside of North America…. Subscribe to Read MoreAlready a member? Log in here...
Credit investors will remember the summer of 2012 as the turning point of the eurozone sovereign crisis. Mario Draghi’s “whatever it takes” intervention caused a decisive shift in sentiment and triggered a long rally that has lasted to this day…. Subscribe to Read MoreAlready a member? Log in here...