Creditflux Newsletter

Listed credit derivative products company Primus Guaranty recorded a $21.5 million loss in Gaap-accounting terms in its second quarter. It says its profits would be $14.9 million - up 21% from a year earlier - after stripping out mark-to-market effects.

The portfolio of mostly single name corporate credit default swaps owned by Primus Financial, the company's triple A rated entity, grew to $18.6 billion up from $15.8 billion at the end of 2006. Its corporate tranche investments now stand at $3.1 billion in notional terms and it has sold protection on $75 million of asset backed securities.

Primus also announced that it has transferred its PRS Trading Strategies portfolio to Harrier Credit Strategies Master Fund, a hedge fund it set up in April.