CDS Auction To Bring Some Peace Of Mind
Dow Jones - February 15, 2008
The story discusses credit events and how the CDS market deals with these occurrences. The story outlines some of the key benefits of the auction process such as allowing investors to settle trades in cash rather than physical bonds. The story also lays out how the auction works with dealers putting out bids in the actual amounts of bond they want to buy or sell. It states that in a second phase, orders are sought to match up imbalances. Thirteen 13 dealers and 589 investors agreed to adhere to the results of the impending auctions for Quebecor World Inc.
The story also says that the auction approach has been modified somewhat with the framework now stabilizing.
"Since the last auction there have been few if any changes. That's something the market has been waiting for - a stable protocol that's getting to the point where everyone is happy with all the details," said Mazy Dar, chief strategy officer at Creditex Group Inc.
