March 30th, 2015
by Jennie Bai and Or Shachar - Liberty Street Economics, Federal Reserve Bank of New York
Since their inception in 2002, credit default swap (CDS) indexes have gained tremendous popularity and become leading barometers of the credit market. Today, investors who want to hedge credit risk or to speculate can choose from a broad menu of indexes that offer protection against the default of a firm, a European sovereign, or a U.S. municipality, among others. The major CDS indexes in the U.S. are the CDX.NA.IG and the CDX.NA.HY, composed of North American investment-grade (IG) and high-yield (HY) issuers, respectively. In this post, we focus on the CDX.NA.IG index.
Early Bird Headlines 30 March 2015
Econintersect: Here are some of the headlines we found to help you start your day. For more headlines see our afternoon feature for GEI members, What We Read Today, which has many more headlines and a number of article discussions to keep you abreast of what we have found interesting.
Econintersect: A new report from the Public Investors Arbitration Bar Association (PIABA) charges that brokerage firms bilk investors out of an average of $17 billion dollars a year through abusive misrepresentation. Nine major brokerages are named specifically: Merrill Lynch, Fidelity Investments, Ameriprise, Morgan Stanley, Allstate Financial, and Charles Schwab. This organization, PIABA, is, according to their website, "an international bar association whose members represent investors in disputes with the securities industry". Their members are in an adversarial position with repsect to brokerages when they represent clients filing arbitrage complaints against their brokers.
Econintersect: John Mauldin is presenting the 2015 Strategic Investment Conference in San Diego, CA, April 29 to May 2 at the Manchester Grand Hyatt. The conference is co-hosted by Altegris. The objective of the conference is to to learn how the world's leading economic, investment, and geopolitical minds are tackling the challenges presented by rising volatility, falling commodity prices, and global policy divergence, which are threatening to trigger a new round of financial crises around the world.