SNS Bank CDS auction produces high price

As expected, CDS auction for Dutch bank produces high price for senior notes. 

TAGS: CDS

Comment by: Anonymous. Posted 10 years ago [2013-04-06 11:27:56]

High recovery on the available deliverables (senior debt, I presume) gives lower-than-deserved value to CDS on sub-debt expropriated (allegedly illegally) by the Dutch gov't. The bureaucrats seem to have won a victory over the CDS market at the cost of shattering confidence in Dutch contracts. With this discovery of expropriation, Dutch banks will never need to issue contingent convertibles!