Global credit default swap (CDS) liquidity continued to rise in the past two weeks as market uncertainty about the overall strength of the global economic recovery persists, according to Fitch Solutions.
“The industrials and consumer goods sectors have seen notable rises in liquidity as industry support schemes such as cash for clunkers are being wound down, thereby increasing uncertainty about the sustainability of future demand,” said Thomas Aubrey, managing director, Fitch Solutions.
Global CDS liquidity peaked at 10.40 on 8 October versus a high of 10.42 for the previous two-week period. Europe still remains more liquid than the Americas, with Fitch’s European CDS liquidity index closing at 9.75 and the Americas at 9.98, as of 16 October.
In general, the liquidity of a credit derivative asset increases when it is showing signs of financial stress in combination with a significant amount of debt outstanding and/or changes in its capital structure, including new issuance. The liquidity scores of assets have historically traded between 4 at the most liquid end, through to 29 at the least liquid end. Entities also tend to be more liquid when there is agreement about present value but disagreement about future value due to heightened uncertainty surrounding the entity.
The annual BNP Paribas Cash Management University kicked off on Thursday morning with treasury professionals congregating in Paris from across Europe.
APIs may be a solution to MT940 challenges, says Karen Fagan, treasury operation manager, for British television company, ITV.
Kicking off the first day of the Singapore Fintech Festival, issues with cryptocurrencies were addressed by MIT media labs director, Joi Ito, and panels of technology leaders discussed how they’re using data analytics.
Sibos 2017 day two highlights: Brexit and banking, and why ‘data is the new oil’ in financial services
How nation first politics can impact global financial organisations It’s clear that data and regulation are the two key topics that are ... read more