Credit default swap market reporting

Assignment Help Business Management
Reference no: EM131787345

The following is an excerpt from "MCDX Municipal CDS index on the rise," Credit Default Swap Market Reporting, July 1, 2010 (https://blog.creditlime .com/2010/07/01/municipal-cds-index-rising/)

"The 5-year MCDX increased from 115 bps to 209 bps during the period from April 20 to June 11, 2010 and had nearly doubled 11 days later when it closed at 226.5 bps on June 22. Between September 28, 2009 and April 20, 2010, the index had only increased from 90 bps to 115 bps.

The reason for the rise has been obvious, if not evident in CDS market prices, for quite a while now. Ballooning municipal deficits and lower revenues are creating fiscal problems for many states across America. California and Massachusetts have both announced probes (though mostly inconclusive to date) into municipal CDS trading while Illinois has seen its credit default swaps achieve the status as riskiest state in America."

a. What is meant by a five-year MCDX?

b. What is the link between the "ballooning municipal deficits and lower revenues" and the increase in CDS spreads?

Reference no: EM131787345

Questions Cloud

Discuss what ethical issues are involved : Jennifer VanPelt is the assistant chief accountant at BIT Company, a manufacturer of computer chips and cellular phones
Par asset swap market contain : In pricing a single-name CDS, what information does the par asset swap market contain?
Calculate marston contribution margin percentage : Calculate Marston's 2008 contribution margin percentage, breakeven revenues, and degree of operating leverage under the two scenarios
Compare the mean in a sentence or two : statistician asked a group of 60 employees how many hours they have worked overtime during the last two weeks
Credit default swap market reporting : The following is an excerpt from "MCDX Municipal CDS index on the rise," Credit Default Swap Market Reporting, July 1, 2010
What is the probability that a firm selected : What is the probability that a firm selected at random is a SSSBE unit - Calculate the average of the first performance measure
Compare design and layout of an android phone application : Compare and contrast the design and layout of an Android phone application with that of a traditional desktop application.
Calculate the degree of financial leverage : Mo & Chris's Delicious Burgers, Inc., sells food to Military Cafeterias for $15 a box. The fixed costs of this operation are $80,000.
Calculate the amount of depreciation to report : Calculate the amount of depreciation to report during the year ended December 31 for equipment that was purchased

Reviews

Write a Review

Business Management Questions & Answers

  Caselet on michael porter’s value chain management

The assignment in management is a two part assignment dealing 1.Theory of function of management. 2. Operations and Controlling.

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. Due to increase in the preference for light beer drinkers, Chris Prangel wants to introduce light beer version in Mountain Man. An analysis into the la..

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. An analysis into the launch of Mountain Man Light over the present Mountain Man Lager.

  Analysis of the case using the doing ethics technique

Analysis of the case using the Doing Ethics Technique (DET). Analysis of the ethical issue(s) from the perspective of an ICT professional, using the ACS Code of  Conduct and properly relating clauses from the ACS Code of Conduct to the ethical issue.

  Affiliations and partnerships

Affiliations and partnerships are frequently used to reach a larger local audience? Which options stand to avail for the Hotel manager and what problems do these pose.

  Innovation-friendly regulations

What influence (if any) can organizations exercise to encourage ‘innovation-friendly' regulations?

  Effect of regional and corporate cultural issues

Present your findings as a group powerpoint with an audio file. In addition individually write up your own conclusions as to the effects of regional cultural issues on the corporate organisational culture of this multinational company as it conducts ..

  Structure of business plan

This assignment shows a structure of business plan. The task is to write a business plane about a Diet Shop.

  Identify the purposes of different types of organisations

Identify the purposes of different types of organisations.

  Entrepreneur case study for analysis

Entrepreneur Case Study for Analysis. Analyze Robin Wolaner's suitability to be an entrepreneur

  Forecasting and business analysis

This problem requires you to apply your cross-sectional analysis skills to a real cross-sectional data set with the goal of answering a specific research question.

  Educational instructional leadership

Prepare a major handout on the key principles of instructional leadership

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd