1
Several sovereign CDS already struggle to attract trading activity.
2
Japanese sovereign CDS spreads widened only slightly, showing little worry about the near-term fiscal outlook.
3
ESMA also recommended clarifying the ban on uncovered sovereign CDS trades and exemptions given to market makers.
4
Italian sovereign CDS already behaves oddly because a lot of CVA hedgers are the same way round.
5
These investors are forced into buying sovereign CDS because there is a lack of liquidity for physically delivered foreign exchange derivatives.
6
It led to the EU approving a law to ban "naked" short-selling of sovereign CDS from November this year.
7
The danger is if they can't put on the sorts of trades they want that they'll abandon sovereign CDS altogether, said Hampden-Turner.
8
The EU regulation - which comes into force on November 1 - looks set to further diminish activity in sovereign CDS, analysts say.
9
UK banks have also been affected and UK sovereign CDS moved sharply wider Friday morning too on expectations of a hung parliament after the election.
10
That was lower than many other sovereign CDS auctions in recent years, including troubled Venezuela which priced at 24.5 cents in December 2017.
11
Indonesia's spread has narrowed below the Philippines' sovereign CDS spread of 184.75, implying it is now seen as a lower default risk than the Philippines.