Nice to See CDS Quotes (Credit Default Swaps) On Bloomberg.com

Source: Wikimedia Commons
Humankind might have a decent chance of survival now. I found credit default swap quotes on Bloomberg.com, but they are still unsearchable on their site. I found sovereign CDS quotes and a few corporates via Google. Most are labeled as the symbol itself so it's hard to find them by name. Quotes are the 5-year credit default swap priced in spread (premium payment/year) which protect against a bond default, ranging from corporate bonds, state debt, Treasuries and foreign Government debt. I could not find CDS indices (NAIG/investment grade corporate bond CDS, NAHY/high yield CDS, ABX/asset backed securities CDS, CMBX/commercial mortgage backed securities CDS, MCDX/muni bond CDS and more). *For those indexes, Markit actually has quotes and charts available on their website. Basically you're watching credit quality trade on a daily basis (real-time credit ratings).

Any piece of debt with a pulse can be insured with a credit default swap. The contracts are originated and traded by banks (Goldman Sachs et al.), insurance companies (AIG) and hedge funds. It's actually a great way to hedge debt and capitalize on credit volatility, until the insurer can't pay up on the claim (AIG haha). With the sovereign debt crisis upon us, you can find most government bonds and CDS on Bloomberg.com. Most have historical charts going back 5-years.

Corporate Credit Default Swaps (CDS) [some outside US, need to find more]
GENERAL ELECTRIC CAPITAL CDS USD 5Y (GECC)
MORGAN STANLEY CDS USD 5Y
GOLDMAN SACHS CDS USD 5Y
JP MORGAN CDS USD 5Y
BANK OF AMERICA CDS USD 5Y
WELLS FARGO CDS USD 5Y
CITIGROUP CDS USD 5Y (CGI)
MERRILL LYNCH CDS USD 5Y
U.S. BANK CDS AVERAGE*
CDS BID-ASK SPREAD*
AIG GROUP CDS USD 5Y
US STEEL CDS USD 5Y (X)
BERKSHIRE HATHAWAY CDS USD 5Y
ALCOA CDS USD 5Y
FAIRFAX FINANCIAL HOLDINGS CDS USD 5Y
TATA MOTORS CDS USD 5Y
CEMEX CDS USD 5Y
WOODSIDE PETROLEUM CDS USD 5Y
BOEING CDS USD 5Y (BA)
AT&T CDS USD 5Y (ATT)
ALLSTATE CDS USD 5Y (ALL)
IBM CDS USD 5Y
PFIZER CDS USD 5Y (PFE)
MCDONALDS CDS USD 5Y (MCD)
TARGET CDS USD 5Y (TGT)
ALLY BANK CDS USD 5Y (Formerly GMAC Bank)
FORD CDS USD 5Y (FCO, CFM1U5)
CATERPILLAR CDS USD 5Y (CAT)
WALMART CDS USD 5Y (WMT)
JC PENNEY 5Y CDS (JCP)
DOW CHEMICAL CDS USD 5Y (DOW)
HEWLETT-PACKARD CDS USD 5Y (CHWP1U5)
DELL 5Y CDS
GENERAL ELECTRIC CORP CDS USD 5Y (CGEIUM:IND)
HARTFORD CDS USD 5Y
PETROLEOS DE VENEZUELA CDS USD 5Y (PDVSA)
NORINCHUKIN BANK CDS USD 5Y
UST LLC 5Y CDS
SANPAOLO IMI SPA 5Y CDS
ROYAL BANK OF SCOTLAND 5Y CDS (EUR)
LLOYDS TSB BANK PLC 5Y CDS
BNP PARIBAS SA 5Y CDS
UNICREDIT SpA 5Y CDS
SOCIETE GENERALE SA 5Y CDS
BANCO SANTANDER SA 5Y CDS
CREDIT AGRICOLE 5Y CDS
ING GROEP NV 5Y CDS
BANCO POPOLARE SC 5Y CDS
COMMERZBANK AG 5Y CDS
BANK OF IRELAND 5Y CDS
DEUTSCHE BANK 5Y CDS
BARCLAYS BANK PLC 5Y CDS
HSBC Holdings PLC 5Y CDS

Update 8/26/2011: Anyone know where quotes/charts are of European Bank CDS? (Royal Bank of Scotland, Barclays, Lloyds, BNP Paribas, Unicredito, Credit Agricole, Banco Santander, Societe Generale etc). Their CDS spreads are wider than they were in 2008. Somewhat important, no? *Found them (courtesy of Marco's comment below), I added them above.

Sovereign (Government) Credit Default Swaps (CDS)
JAPAN CDS USD 5Y (here are 3m-30y JGB yields)
JAPAN CDS USD 10Y
US TREASURY CDS EUR5Y (<- in Euros, anyone find 10Y?)
STATE OF CALIFORNIA CDS USD 5Y
UNITED KINGDOM CDS USD 5Y
UNITED KINGDOM CDS USD 10Y
NETHERLANDS 5Y CDS
TURKEY CDS USD 5Y
HUNGARY CDS USD 5Y
AUSTRIA CDS USD 5Y
SWEDEN CDS USD 5Y
BULGARIA CDS USD 5Y
LATVIA CDS EUR 5Y
KAZAKHSTAN CDS 5Y
IRELAND CDS USD 5Y
SOUTH AFRICA CDS USD 5Y
SPAIN CDS USD 5Y (works)
PORTUGAL CDS USD 5Y
GREECE CDS USD 5Y check update
ITALY CDS USD 5Y (works)
RUSSIA CDS USD 5Y
ICELAND CDS
ARGENTINA CDS USD 5Y
VENEZUELA CDS USD 5Y
CHINA GOV CDS USD 5Y
CHILE CDS USD 5Y
GERMAN CDS USD 5Y
REPUBLIC OF KOREA CDS USD 5Y
BRAZIL CDS USD 5Y
FRANCE CDS USD 5Y
UKRAINE CDS USD 5Y
POLAND CDS USD 5Y
ISRAEL 5Y CDS
PIIGS CDS (Portugal, Italy, Ireland, Greece and Spain Average)
G6 CDS*

This is just a few; please let me know if you find anymore or a quote is not working. *A commenter posted more links to CDS quotes.

A little after the fact, but it's good to see CDS data available with a chart (albeit a few) to prepare yourself, retirement account or job for the next Fortune 500 massacre, whenever it may be. The mentality that only large financial institutions should care about credit default swaps, LIBOR (inter-bank lending rate) etc, in my opinion, misleads small investors and retirement accounts involved in the publicly traded markets. Also, did any business school teach about the risks involved with OTC derivatives, leverage and counterparties? What ever happened with that. Why did we have to rely on congressional hearings to educate the public on what went down "over-the-counter" between banks, insurers and hedge funds. I'm sure people with passively managed accounts could still care less about CDS, even if they lose money for 15 years straight, but it doesn't hurt to watch credit quality trade. Happy July 4th by the way.

See quotes of other useful financial indicators including government Bond Yields, municipal bond yields, corporate bond yields, credit spreads and volatility Indexes and check out this list of quotes at Market Ticker and Trader Crucible.

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Update 11/7/2011: I was noted that these quotes are back up on Bloomberg.com. I'm not going to retract my opinions here though, just in case they vanish again.

Update 10/29/2011: Unfortunately, single-name CDS (credit default swap) quotes and charts (via CMA?) are no longer available on a delayed basis at Bloomberg.com. Not sure why they didn't put volume on there. It was important to monitor bank and sovereign CDS recently because banks (again) and countries were at risk of defaulting on their debt or having liquidity runs. And there is counterparty risk all over again with the banks, just like in 2008. As you know, banks voluntarily agreed to take a 50% haircut on their Greek debt, so there will be no credit event triggering payments on Greek CDS. Unless something changes: Greece calls referendum on EU bail-out (FT 10/31/2011), Greek referendum could mean CDS Greek default trigger (CreditWritedowns), Papandreou Calls on Greeks to Back EU Debt Accord in Referendum (BizWeek). WTF? Either way, this market is important to watch, as you can see. But more importantly, corporate bond CDS and securitized debt CDS (mortgage-backed securities or MBS CDS- see the Markit links below), which price the risk of the overall credit market.

For some reason the powers that be continue to prevent price transparency in single-name OTC (over-the-counter) credit derivatives. In my opinion, over-the-counter credit default swap exposures distort market risks because the activity is hidden from the majority of market participants. It can also provide a way for large investors to trade on inside credit information (via direct relationships with creditors in deals, board seats, etc.) and push for a bankruptcy filing to get paid off at par, whether they own the bonds or not. This is also BS because private external intentions on public securities misleads the market and other investors. CDS activity can also tip off trading opportunities in other markets. But more importantly, when the credit market turns sour, credit derivatives fuel counterparty risk fears, which puts banks and large brokerages at risk and the whole economy, like we saw in 2008 and now again in Europe. Question... Can activist investors with seats on a company's board of directors build unreported synthetic short positions via credit default swaps while f--king with the company?

With OTC bond quotes and charts (what credit default swaps are supposed to insure) publicly available and fully transparent on FINRA.org (securities regulator), it makes me wonder why there's a lack of transparency in the $29.8 trillion CDS market. Derivatives were partly responsible for the financial crisis in 2008, and without government bailouts, it would have been a moment of judgment for these derivatives. What is the FINRA equivalent for credit default swaps, the ISDA? Update: You can view weekly activity of the top 1,000 reference entities' gross and net notional values at the DTCC (Depository Trust and Clearing Corporation), which is like the "open interest" for equity options. But again this is delayed data. Here is more on the data available at FINRA:

"Welcome to the Bond Section of the Market Data Center. This section includes general bond market information such as news, benchmark yields, and corporate bond market activity and performance information, descriptive data on U.S. Treasury, Agency, Corporate and Municipal Bonds, Credit Rating Information from major rating agencies, and price information with real-time transaction prices for Corporate and Agency Bonds (TRACE), Municipal Bonds (MSRB) and end of day prices for U.S. Treasury Bonds."

Markit, a credit derivative data provider, provides daily quotes and charts for CDX (corporate bond CDSs), ABX (asset-backed security CDSs), CMBX (commercial mortgage-backed security CDSs) and PrimeX (prime mortgage-backed security CDSs) Indices on their site, as well bond indices (iBoxx, iTraxx) and end of day closing prices for LCDX (leveraged loan CDSs), MCDX (muni CDSs) etc. FINRA now offers end-of-day trading activity reports and pricing tables for ABS, MBS and CMBS via TRACE (no historical charts though).

In short, this market allows hidden side bets on publicly traded debt, whether as a hedge or speculation (having exposure without actually trading the underlying security), which is really reserved for large financial institutions who can pay $100k-$1 million per year (depending on the rate) to insure $10 million worth of debt, and pay the brokerage fees and CDS data subscriptions. And 5-year credit default insurance is used by hedge funds to hedge equity longs (capital arbitrage). Not that this is a bad thing, but for the sake of human advancement in investing, how about a CDS data provider (CMA Datavision, Markit, DTCC) allows delayed single-name CDS quotes and charts on a website and monetize it with ads (it was delayed one-day before on Bloomberg.com). Or release a cheaper "lite" CDS product with delayed data. Or better yet, chop up the notional value of the contracts and put them on an exchange and make them available to the public via online brokerages like futures. And do the same thing with the cash bond market as well. Have exchange traded mini-bonds with exchange traded bond options available like the stock market. Why don't these markets fully exist yet in the discount retail brokerage system?

Macro-Man introduced the idea of "bond futures". There is a reason why this post has been my most popular post since July 2010. Hopefully they reappear on Bloomberg.com in some form in the future. Here's an interesting article at Macro-Man's blog on Greek CDS, credit default swaps and bond futures.


"But there is a viable alternative. TMM would like to introduce their readers to the humble Bond Future. That long-standing, well-understood derivative that has provided liquidity, transparency and price discovery to bond markets in many countries for 40 years. Bond futures with deliverable bond baskets allow basis trading, speculation and hedging, without the idiosyncrasies of CDS contracts. But of course, futures markets aren't that profitable for banks... well, you reap what you sow, right?"

Update: More links to quotes can be found in this comment.

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