The latest on Glencore

By Edward Harrison On Jan 6, 2009

FT Alphaville, one of my favorite blog sites, has the latest on Glencore and its credit default swaps. They are exploding to the downside for firms issuing insurance against Glencore’s default. Here’s Alphaville’s chart:

I have written about this twice before – first in November (Glencore: A Swiss giant on the edge) and then again last month ( Glencore: credit default swaps suggest something amiss) – but have no news to add here.

See the Alphaville link below for what they have to say. But, with a chart like this, Glencore is definitely a company to watch. Comments from anyone who knows more are appreciated.

Source
Glencore: time to come clean

derivatives

Edward Harrison 7783 posts 575 comments

Edward Harrison is a senior Editor at Bloomberg. He is also the founder of Credit Writedowns newsletter, a former career diplomat, investment banker and technology executive with over twenty five years of business experience. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.

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Links: 2009-01-06

2 Comments

lostintranslation11 says 16 years ago

I wouldn't read to much into the price movement. Markets are very thinly traded, particularly at such wide levels (and wide bid/offer). Obviously sentiment is slightly better in CDS markets in recent weeks and it wouldn't take more than a few small trades (profit taking & closing out existing shorts most probably) to move the levels substantially.

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