Tag Archives: CDS spreads

How Cheap Gasoline Can Lead to Costly Insurance

With oil prices at 12-year lows, drivers are spending less money to fill their tanks.  However, investors looking to insure themselves against the default risk of energy bonds are being asked to pay up.  Rapidly decreasing oil prices have had a negative impact on the forecast operating cash flows of energy companies.  As uncertainty rises, Read more […]

U.S. Debt Markets/CDS reaction to Argentina Credit Default

On Wednesday, July 30th, S&P cut the credit rating on Argentina’s foreign currency bonds to “selective default” after they failed to reach a deal with holdout bondholders from their last default in 2001. US Treasuries initially sold off only to recover, investment grade corporate bond markets had a somewhat muted reaction, while high yield and Read more […]