credit default swaps News

QBE Bond Risk Surges as U.S. Expansion Sours: Australia Credit Risk

Bond risk on QBE Insurance Group Ltd. halved in the first 11 months of the year before surging this month as the company said it would lose money. Credit-default swaps on QBE have climbed 41 basis points since Nov. 30 …

Dodd-Frank Swaps Rule Could Impact Insurers’ Risk Management, Ratings: S&P

Ratings analysts at Standard & Poor’s say that a Dodd-Frank provision having to do with derivatives could improve insurers’ risk management and have a minor impact on ratings. In response to the financial crisis of 2008, Congress passed the Dodd-Frank …

Investors Skirt New Shorting Curbs to Bet on European Union Woes

New rules to stop speculators making Europe’s debt crisis worse by betting on government bond defaults are prompting investors to find alternative ways to insure against or profit from bad news in the region. Credit default swaps (CDS) on sovereign …

MBIA Reportedly Ready to Settle with UBS Over Restructuring

UBS AG has agreed to settle litigation against MBIA Inc. that challenged the bond insurer’s 2009 restructuring, people familiar with the matter said on Thursday. The UBS settlement calls for credit-default swaps to be commuted in exchange for a cash …

IAIS Calls for Greater Scrutiny over Non-traditional Insurance

Regulators should focus on insurers’ role in markets outside their traditional sphere, as such activities could worsen the economic impact of companies in the sector going bust, the International Association of Insurance Supervisors said in a report on Tuesday. The …

New York Court Dismisses Bond Insurer MBIA’s Suit Against Merrill

A New York state appeals court Tuesday dismissed a lawsuit in which bond insurer MBIA Inc. accused Merrill Lynch & Co. of fraudulently misleading it into providing insurance on $5.7 billion of risky debt. The ruling is a setback for …

What the Financial Crisis Commission Concluded About AIG’s Failure

The taxpayer bailout of giant American International Group (AIG) became necessary largely because of AIG’s poor risk management of its financial products and because  deregulation of over-the-counter derivatives, including credit default swaps, let the company get away with its risky …