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Tuesday, 24 January 2017

Credit Derivatives

BMPS CDS anomaly suggests safety for senior holders

IFR 2164 17 December to 6 January 2017

Pricing anomalies on credit default swaps referencing Banca Monte dei Paschi di Siena indicate rising expectations that senior bondholders will avoid being bailed in after the bank reopened an expanded debt-for-equity swap on subordinated debt.

Stock, bond markets could see sharp declines- U.S. financial watchdog - Reuters News

13 December 2016

The Office of Financial Research found stock valuations, measured by comparing prices to earnings, have reached the same high level that they hit before “the three largest equity market declines in the last century.”