Tag "credit default swaps"

Corporate Credit Markets: Party Like It’s 2017!

It has been quite a while since I have written about the state of the corporate bond market. Longtime readers know that I follow the corporate credit markets very closely as the main tell of what drives equity markets. And considering the noise surrounding the markets, it probably a good…

Credit Markets Update: European Financials Firm After BREXIT

I thought I’d provide a quick update on the credit markets in the aftermath of BREXIT. In particular European financials. The attached chart below shows the price of an index of credit default swaps (CDS) on subordinated debt of European financials, and the price of the iShares MSCI Europe Financials…

Are Credit Markets Signaling More Pain For Stocks?

I have been offering a fair amount of color on the twists and turns of corporate credit and credit derivatives, and their impact on stocks via my Twitter handle (@FZucchi). The skinny is that credit and stocks are behaving in a manner almost identical to the swoon of summer 2011. And,…

Evaluating The Chinese Market Crash: Stocks vs Credit

Chinese stocks have effectively crashed and, given the laughable reliability of the underlying companies’ financials, it shouldn’t surprise anyone if the Chinese market crash continues lower after a brief pause. That said, Credit Default Swaps highly sensitive to Chinese-related credit so far have yawned over all the equity commotion. As…

Credit Markets Update: Is Something Scary Headed This Way?

With the “big bad event” that was the payroll number out of the way, it’s worth recapping the state of the corporate credit markets particularly in light of some recent moves. First, a quick reminder of why Brian Reynolds (now at New Albion Partners) views corporate bonds and equities as…

Flickering Hope In The Energy Sector: A DeMark View

Over the last couple of weeks I have been tweeting that the credit market for the Energy Sector (and select energy related names) seems to have made a turn for the better, albeit at levels that are still stressed. That sentiment is now spilling over into energy stocks. Looking at…

The Current State Of The Global Credit Markets

Last week I wrote on how I interpret corporate credit and credit derivatives as guideposts for equity markets. In this piece I am going to show you some data to put in perspective where the credit markets currently stand, and, where relevant, how this compares to where we were during…

European CDS Rates and Implied Credit Ratings

By Max Moore A while back, I did a term project examining the sustainability of Japanese sovereign debt. The ultimate goal of the project was to estimate the effect of a sovereign downgrade on credit default swap (CDS) spreads. In the process, I wound up building a rudimentary CDS pricing…