Entries from Chemicals & The Economy tagged with 'credit derivatives'
INEOS, Georgia Gulf, Chemtura bond prices plunge
Bond markets are a good place to look if you want to understand the outlook for major companies in the chemical industry. A key market is in 'credit default swaps' (CDS), which offer insurance against the possibility that a company...
Flawed thinking on financial risk
Having no risk management systems in place may be better than having the wrong systems in place. That seems to be one of the lessons from the recent financial meltdown. The reason for this apparent paradox is that awareness of...
US equities and crude oil follow each other
An interesting note from PetroMatrix highlights the close linkage that has now developed between changes in the Dow Jones Industrial Average and WTI crude oil prices. The chart, showing market action on Thursday, makes the point very clearly. PetroMatrix's...
Bailout passes, Wall Street falls
'Buy on the rumour, sell on the news' is the classic definition of a weak market. So the US stock market's reaction to the passing of the US bailout is a worrying indication that further problems may lie ahead. On...
5 key questions about the US bailout
The proposal now before Congress to authorise the spending of $700bn to bail out Wall Street contains just 849 words. It avoids the need to go into further detail via its suggestion that the Treasury Secretary should simply have unlimited...
Stress-testing the global financial system
Yesterday’s "swings in financial derivative prices were so extreme that they implied scenarios in which the core of the global liquidity system suffers a serious assault", according to JP Morgan, the investment bank. Watch out, if current US sub-prime mortgage...
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