(Bloomberg) -- Investors should sell credit-default
swaps based on bonds of Macquarie Bank Ltd., Australia's largest
securities firm, as increased market volatility is unlikely to
hurt its earnings, according to JPMorgan Chase & Co.
Credit-default swaps based on $10 million of Macquarie's
subordinated debt have risen more than $24,000 in the last three
months to $42,000 today, the highest since Bloomberg started
recording prices in Jan. 2004. The five-year contracts allow
traders to bet on a company's ability to repay its debt. Higher
prices suggest deterioration in the perception of credit quality;
a decrease indicates the opposite.
Read more at Bloomberg Bonds News
swaps based on bonds of Macquarie Bank Ltd., Australia's largest
securities firm, as increased market volatility is unlikely to
hurt its earnings, according to JPMorgan Chase & Co.
Credit-default swaps based on $10 million of Macquarie's
subordinated debt have risen more than $24,000 in the last three
months to $42,000 today, the highest since Bloomberg started
recording prices in Jan. 2004. The five-year contracts allow
traders to bet on a company's ability to repay its debt. Higher
prices suggest deterioration in the perception of credit quality;
a decrease indicates the opposite.
Read more at Bloomberg Bonds News
No comments:
Post a Comment