Nov. 6, 2006 -- Investment banks and hedge funds are being forced rapidly to adjust their trading strategies amid reported "panic selling" in the U.S. and European credit derivatives market last week.
This heavy selling has driven the cost of insuring debt against default in the market for credit default swaps to record low levels -- signalling either that investors are very optimistic about corporate debt or that prices are so distorted that they are not being correctly paid for risk.
The unexpected price swings are believed to have caused pain at some big investment banks and hedge funds, some of which are reportedly now being forced to sell to cover their loses, exacerbating the market swing.
BANGKOK, Jan 11 — A series of late-night bomb attacks targeted 11 PTT petrol stations in Thailand’s southern border provinces of Narathiwat, Pattani and Yala…