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20 October 2011

BNP urges EFSF to issue credit default swaps


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フィナンシャル・タイムズ紙はBNPの提案は、債務不履行が発生した場合にEFSFが投資家の最初の損失を保証するというアリアンツ及びドイツ銀行の提案に対抗するものであると報道している。


The last-minute proposal from BNP, which is in talks with policymakers about it, adds another twist to the intense debate ahead of a crucial European summit on Sunday. BNP’s plan is that the EFSF should write credit default swaps – a form of protection in the case of a default – for investors who have participated in Italian and Spanish auctions.

But the timing of the proposal is controversial, coming in the same week as the European Union agreed to make permanent its ban on so-called naked CDS, the practice of buying the insurance as a straight bet rather than using it to reduce risk on other underlying positions.

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© Financial Times


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