The latest on Glencore

| 6 January 2009 08:37

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:

glencore-cds-2009-01-06

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

avatar About Edward Harrison

Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty years of business experience. He is also a regular economic and financial commentator on BBC World News, CNBC Television, Business News Network, CBC, Fox Television and RT Television. He speaks six languages, a skill 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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1 Comment

  1. avatar lostintranslation11 says:
    6 January 2009 at 02:15

    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.