Creditflux Newsletter

Who said traders can count? Sovereign credit default swap traders are planning an index called the G7.

However, until Canada becomes liquid enough, the ultra high-grade index will have only six names. Perhaps, to save their mathematical reputations, they should add Kazakhstan for a little diversity.

We have recently seen a circular argument do the rounds about the famous high yield maturity wall.

Recent research from Barclays Capital is just one example. It says that the $850 billion in high yield bonds and loans that will need to be refinanced between 2012 and 2014 is less daunting than it appears.

After all, note the researchers, up to $300 billion of this debt could default before it reaches maturity.

So let’s get this straight: investors do not need to worry about companies defaulting as a result of being unable to roll over their debt because these borrowers will have defaulted already.

How comforting.

We all know that certain French banks have shelved their international expansion plans recently. But Calyon seems to have become even more insular than most.

The bank recently hired former ABN Amro flow credit trading head Stephen Lane with the geographically illiterate job title of global head of credit trading for Europe and Asia.

Has it erased the western hemisphere from the map of the world?