Credit Default Swaps...Anyone indulge?

HoboTrader · 04-29-2012, 11:42 PM

I've been searching around for them but the best thing I can find is CME's credit default binary option but they're only for select companies...Are there ways to buy them on countries? Small quantities even for hedge positions. I know the ISDA can basically punk/Corzine you.

Tekmnd · 04-30-2012, 12:56 AM

You aren't going to find an easy way to invest in CDS if you are a retail investor/trader.
However, sort of what you are looking for-
http://www.allcountry.easyetf.com/do...FO02225702.pdf

Cheers
Tek

forexer · 04-30-2012, 08:19 AM

There is no way unless you are an accredited investor or above. CDSs are OTC products. There have been calls to regulate them and hence fix trading on exchanges but there is alot of inertia on the bank's obsession with all things OTC and unregulated.

forexer · 04-30-2012, 08:39 AM

Quote:

Originally Posted by Tekmnd

You aren't going to find an easy way to invest in CDS if you are a retail investor/trader.
However, sort of what you are looking for-
http://www.allcountry.easyetf.com/do...FO02225702.pdf

Cheers
Tek

I must add that anything that is securitized into a tradable package (ie: ETFs on sovereign credit default spreads) have to be rebalanced on a daily basis. This will definitely lead to aberrations in their prices. So you shouldn't be surprised to heavily underperform (relative to actual CDS performances, weighted average of course) being long a so called CDS ETF when the spreads widen. The daily rebalancing makes this a terrible 'buy and hold' sort of position but they could track well intraday.

HoboTrader · 05-07-2012, 04:46 PM

Thanks guys. Ugh...that sucks. Wish it was available for retail public. I hear you on rebalancing, saw myself getting ripped off from double/triple levered ETFs.

04-29-2012, 11:42 PM	#1 (permalink)
HoboTrader Badges About Total Awards: 3 InformedQuotient: 30 Join Date: Dec 2011 Location: Canada Posts: 297 Thanks Stats Thanks (Given): 114 Thanks (Received): 38	Credit Default Swaps...Anyone indulge? I've been searching around for them but the best thing I can find is CME's credit default binary option but they're only for select companies...Are there ways to buy them on countries? Small quantities even for hedge positions. I know the ISDA can basically punk/Corzine you. Share This \|
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04-30-2012, 12:56 AM	#2 (permalink)
Tekmnd Community Co-Host Badges About Total Awards: 12 InformedQuotient: 265 Join Date: Aug 2008 Location: San Diego Posts: 4,120 Thanks Stats Thanks (Given): 1 Thanks (Received): 265	You aren't going to find an easy way to invest in CDS if you are a retail investor/trader. However, sort of what you are looking for- http://www.allcountry.easyetf.com/do...FO02225702.pdf Cheers Tek __________________
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04-30-2012, 08:19 AM	#3 (permalink)
forexer Badges About Total Awards: 10 InformedQuotient: 220 Join Date: Jan 2009 Location: Singapore Posts: 3,183 Thanks Stats Thanks (Given): 38 Thanks (Received): 231	There is no way unless you are an accredited investor or above. CDSs are OTC products. There have been calls to regulate them and hence fix trading on exchanges but there is alot of inertia on the bank's obsession with all things OTC and unregulated.
	Thank HoboTrader thanked for this post

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05-07-2012, 04:46 PM	#5 (permalink)
HoboTrader Badges About Total Awards: 3 InformedQuotient: 30 Join Date: Dec 2011 Location: Canada Posts: 297 Thanks Stats Thanks (Given): 114 Thanks (Received): 38	Thanks guys. Ugh...that sucks. Wish it was available for retail public. I hear you on rebalancing, saw myself getting ripped off from double/triple levered ETFs.
	Thank