The government has until 15 December to reimburse the hedge funds, which shunned two previous debt swaps.
Argentina had been given until 15 December to reimburse the hedge funds, which shunned two previous debt swaps.
But that action should pave the way for the debt-equity swaps with the bankers that will make Daewoo's subsidiaries healthy enough to sell, so breaking up Mr Kim's fief.
Swaps on debt from Portugal, Spain, and Greece were the top-performing contracts in the five days through May 3.
The polemical edge is unrelenting: deregulation of the financial markets was a disaster, and piling collateralized debt obligations and insurance swaps atop sub-prime mortgages was insane.
Some of these assets are extremely complicated: credit derivatives, collateralized debt obligations, credit defaults swaps.
Banks are also raising their stakes in their most troubled borrowers, via debt-for-equity swaps, in return for tepid restructuring schemes.
Citadel is down 32% for the year and credit default swaps in its debt have soared in recent days.
More critically, these risks can spread like wild fire as we saw in collateralised debt obligations and credit default swaps markets.
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He said credit default swaps on Greek debt are at 91% chance of a default and one-year yields are now near 93%.
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When the jargon of the 2008-09 recession wasn't harsh, it was often mystifying: credit default swaps, collateralised debt obligations and quantitative easing.
As part of the deal, these firms are given preferential treatment by the banks, including debt-for-equity swaps, lower interest rates, and access to a pool of some 2 trillion won in new loans and trade financing.
We are working with customers because it is meant to bring a lot more transparency, a lot more reporting, much more in market data flows, a lot more storage of trading records for longer and it brings into its orbit a lot of esoteric instruments like interest rate swamps, credit default swaps and collateralized debt obligations.
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There are rumours that Greek banks have also been keen sellers of credit-default swaps on sovereign Greek debt, in effect doubling up on their exposure to a debt crisis.
Economic growth will help prevent another financial time bomb--credit default swaps, a form of debt insurance--from exploding.
Many traders follow an index of credit default swaps that tracks values of subprime debt.
The only way to hedge that debt was to buy default insurance via the swaps market.
The Senate also rejected an amendment that would outright ban naked credit default swaps, which basically are a bet on the future creditworthiness of a company or debt issuer. (The House version of financial reform did ban naked credit default swaps).
On Wednesday credit default swaps that insure GE Capital's debt jumped 110 basis points, to 500 basis points, according to pricing service Markit Intraday.
The insurer had painted itself into a corner by writing credit default swaps on mortgage-related securities and collateralized debt obligations that were set to pay out in the event that those investments soured.
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There would be no collaterialised debt obligations, (CDOs), no credit default swaps (CDS), indeed much of the complexity of the financial markets would simply disappear in a puff of smoke.
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Last year, when Sainsbury was struggling, some of these swaps were priced at 150 basis points per unit of debt insured.
Greece has cleared another hurdle as it struggles to avoid default, going through with its highly controversial debt restructuring (dubbed PSI), and effectively forcing the International Swaps and Derivatives Association (ISDA) to rule, along with credit rating agencies, that the Hellenic Republic has indeed defaulted.
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Europe is back atop the agenda as holders of Greek debt and public agencies discuss how to engineer a debt restructuring that will both satisfy all parties and avoid triggering credit default swaps.
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Last week five-year Greek credit-default swaps indicated a 92% chance that the country would miss its debt payments ( read here).
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There were other offers including preferred shares, unsecured debt, a special purpose vehicle in the Cayman Islands, and investments in credit default swaps.
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Long seen by German politicians as the purview of "speculators, " naked swaps have been blamed for many of the ills plaguing Europe's sovereign debt.
Similar practices also caused massive systemic exposure to credit default swaps (CDS), as traders bet on credit defaults without holding any of the underlying debt obligations.
These ones, called credit default swaps, appear to have had the characteristic of potentially yielding a profit for JP Morgan if the debt of highly rated companies performed significantly better than that of lowly rated companies.
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