A consortium of 10 global commercial and investment banks announced plans to provide 70 billion dollars to help offset a credit squeeze.
Bank of America, Barclays, Citibank, Credit Suisse, Deutsche Bank, Goldman Sachs, JPMorgan Chase, Merrill Lynch, Morgan Stanley, and UBS, said in a joint statement they "initiated a series of actions to help enhance liquidity and mitigate the unprecedented volatility and other challenges affecting global equity and debt markets."
There are known knowns, there are known unknowns, but then there are the unknown unknowns.I do not expect a servere market correction. Most of the negatives are alreday known now. Seems it's more a case of riding out the storm. There will be ups and downs, more downs than ups are very likley but somewhere the tide will turn.
I do not expect a servere market correction. Most of the negatives are alreday known now. Seems it's more a case of riding out the storm. There will be ups and downs, more downs than ups are very likley but somewhere the tide will turn.
What went up, must come down, many times over, negative contagion.From Wikipedia, the free encyclopedia
A credit default swap (CDS) is a credit derivative contract between two counterparties, whereby the "buyer" or "fixed rate payer" pays periodic payments to the "seller" or "floating rate payer" in exchange for the right to a payoff if there is a default[1] or "credit event" in respect of a third party or "reference entity".
If a credit event occurs, the typical contract either settles by delivery by the buyer to the seller of a (usually defaulted) debt obligation of the reference entity against a payment by the seller of the par value ("physical settlement") or the seller pays the buyer the difference between the par value and the market price of a specified debt obligation, typically determined in an auction ("cash settlement").
A credit default swap resembles an insurance policy, as it can be used by a debt holder to hedge, or insure against a default under the debt instrument. However, because there is no requirement to actually hold any asset or suffer a loss, a credit default swap can also be used for speculative purposes and is not generally considered insurance for regulatory purposes.
The tide is out for the tsunami; lot's of fat, ugly, greedy corporates are nakedThe market for credit derivatives is now so large, in many instances the amount of credit derivatives outstanding for an individual name are vastly greater than the bonds outstanding. For instance, company X may have $1 billion of outstanding debt and $10 billion of CDS contracts outstanding. If such a company were to default, and recovery is 40 cents on the dollar, then the loss to investors holding the bonds would be $600 million. However the loss to credit default swap sellers would be $6 billion. When the CDS have been made for purely speculative purposes, in addition to spreading risk, credit derivatives can also amplify those risks.
So ladies and gents .......is tonight the night we start making new records ? gunna be intresting thats for sure
Dunno 'bout that.I believe it will. Tomorrow we'll smash through that 4800 barrier that has been holding up as of late. Just my
BTW I'm LMAO.Dunno 'bout that.
There are buyers in this market. There is a concerted effort at a gap fill, up 24 SP points from the gap down.
Don't ask me who is buying or why, but suspect GS a/c no. 95 is underpinning it.
Dunno 'bout that.
There are buyers in this market. There is a concerted effort at a gap fill, up 24 SP points from the gap down.
Next time I post something like this, FADE IT! LOLDunno 'bout that.
There are buyers in this market. There is a concerted effort at a gap fill, up 24 SP points from the gap down.
Don't ask me who is buying or why, but suspect GS a/c no. 95 is underpinning it.
Next time I post something like this, FADE IT! LOL
Posted right at HOD.
Yeah, well bugga-me-dead... we may even get a green day yet!
Next time I post something like this, FADE IT! LOL
Posted right at HOD.
It seemed like the Australian market dropped in anticipation already yesterday, whereas last night the US market dropped only 4%, so I'm only expecting a fairly minor drop today. Then again it could over-panic with Oil and Commodities dropping as well last night too. It's definitely being a learning experience watching all this happen lately. I'm curious as to how low oil will go and how long it will stay low, high 80s/barrell is within reach.
Let's hope that the last of the bad news with financials.
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