Items Tagged with 'Credit derivative'

ARTICLES

  • Credit Default Swap Market Needs Central Clearinghouse: Fitch

    Corporate single-name and index credit default swaps (CDS) remained resilient in '08 and so far in '09, despite credit events, according to a credit policy special report released Thursday by Fitch Ratings. Initiatives to standardize the CDx market aim to make it even less susceptible to credit market events. One such initiative, the clearing of single-name contracts and indices through a central counter party, is a necessary first step in reducing overall concentrated risk, Fitch said.
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  • Ambac Writes Down $228 Million in CDOs During April

    It's a theme we've been reiterating here at HW, but the credit crunch that has roiled markets since the back half of last year is proving that it still has bite left. The latest example comes courtesy of troubled monoline bond insurer Ambac Financial Group, Inc. [stock ABK][/stock], which said Wednesday afternoon that it absorbed net write-downs of $176 million on its insured credit derivatives portfolio during April.
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  • Ambac Loses $3.2 Billion; Pursuing "Strategic Alternatives"

    Ambac Financial Group, Inc., the first monoline bond insurer to see its AAA credit rating wiped out because of ill-timed mortgage exposure, said it is pursuing "strategic alternatives" after reporting a $3.2 billion quarterly loss -- that's $31.45 per share -- on Tuesday. "Strategic alternatives" usually refer to the pursuit of a sale. From Bloomberg:
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  • PMI Warns on Expected Q3 Losses, Withdraws Financial Guidance

    The PMI Group, Inc. said today that it expects to report a loss of $1.05 per share due to "continued weak housing and mortgage markets and associated dislocation in the credit derivative markets." The loss turned analyst expectations onto its head, with Reuters reporting that mean analyst expectations had pegged third quarter numbers at a $0.75 per share profit.
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