Tuesday, September 16, 2008
A $62 TRILLION market, boomed a month ago, is now paused?! Or, is it like Monty Python’s parrot?!
Activity in the $62 TRILLION credit default swaps market is non-existent to decent, depending on the index and name, according to market participants. Index flows are thin, for instance, while there is decent volume in financial companies, according to one participant. "The market is in a state of paralysis, and there is a sense the street is in shock," said Lindsey Spink, investment-grade trader at AXA Investment Managers in Greenwich, Ct., regarding the CDS market.