Some articles on credit default swaps, credit, swaps, defaults, default:
... about the “systemic risk” created by a lack of centralized clearing of credit default swaps ...
... Cash flow CDOs focus primarily on managing the credit quality of the underlying portfolio ... A bank may wish to offload the credit risk to reduce its balance sheet's credit risk ... Instead, synthetic CDOs gain credit exposure to a portfolio of fixed income assets without owning those assets through the use of credit default swaps, a derivatives instrument ...
... banks began entering into interest rate and currency exchange “swaps” with customers ... In 1996 the OCC issued “guidelines” for national bank use of “credit default swaps” and other “credit derivatives.” Banks entered into “credit default swaps” to protect against ... Banks later entered into such swaps to protect against defaults on securities ...
... naive to the quality of the mortgages, so they purchased credit default swaps (a type of insurance product without technically being insurance)for protection of inevitable ... In fact, credit default swaps were created during this time and didn't exist prior to the housing boom ... When homeowners began to default on their mortgage payments the bonds were proven to be too risky for investment ...
... properly regulate derivatives, including credit default swaps (CDS) ... Not surprisingly, the credit markets froze." NY Insurance Superintendent Eric Dinallo argued in April 2009 for the regulation of CDS and capital requirements sufficient ... "Credit default swaps are the rocket fuel that turned the subprime mortgage fire into a conflagration ...
Famous quotes containing the words swaps, credit and/or default:
“When you got to the table you couldn’t go right to eating, but you had to wait for the widow to tuck down her head and grumble a little over the victuals, though there warn’t really anything the matter with them. That is, nothing only everything was cooked by itself. In a barrel of odds and ends it is different; things get mixed up, and the juice kind of swaps around, and the things go better.”
—Mark Twain [Samuel Langhorne Clemens] (1835–1910)
“Laws remain in credit not because they are just, but because they are laws. That is the mystic foundation of their authority; they have no other.”
—Michel de Montaigne (1533–1592)
“In default of inexhaustible happiness, eternal suffering would at least give us a destiny. But we do not even have that consolation, and our worst agonies come to an end one day.”
—Albert Camus (1913–1960)