Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Business Management Expert

Management Studies


Home >> Business Management

The following is an excerpt from "MCDX Municipal CDS index on the rise," Credit Default Swap Market Reporting, July 1, 2010 (http://blog.creditlime .com/2010/07/01/municipal-cds-index-rising/)

"The 5-year MCDX increased from 115 bps to 209 bps during the period from April 20 to June 11, 2010 and had nearly doubled 11 days later when it closed at 226.5 bps on June 22. Between September 28, 2009 and April 20, 2010, the index had only increased from 90 bps to 115 bps.

The reason for the rise has been obvious, if not evident in CDS market prices, for quite a while now. Ballooning municipal deficits and lower revenues are creating fiscal problems for many states across America. California and Massachusetts have both announced probes (though mostly inconclusive to date) into municipal CDS trading while Illinois has seen its credit default swaps achieve the status as riskiest state in America."

a. What is meant by a five-year MCDX?

b. What is the link between the "ballooning municipal deficits and lower revenues" and the increase in CDS spreads?

Business Management, Management Studies

  • Category:- Business Management
  • Reference No.:- M92596027
  • Price:- $10

Priced at Now at $10, Verified Solution

Have any Question?


Related Questions in Business Management

What other factors impacted the sales other than the

What other factors impacted the sales other than the demographics?

Discussion companies use different resources to learn more

Discussion Companies use different resources to learn more about the specific market segments they plan to target. Using the resources in this module, search for information using a zip code of your choice. Some options ...

The freemont automobile factory has discovered that the

The Freemont Automobile Factory has discovered that the longer a worker has been on the job, the more parts the worker can produce. I need help finding an application that computes and displays a worker's anticipated out ...

How is vision used to confront resistance to change and

How is vision used to confront resistance to change, and move through it? How can a shared vision possibly facilitate collaboration or ultimately the successful implementation of a change initiative?

Explain the relationship between managing diversity and

Explain the relationship between "managing diversity and inclusion" and "diversity training." Which is most effective? Why?

If you were a perfect competitive producer what would be

If you were a perfect competitive producer, what would be your product or service? Explain your rationale with at least three characteristics of the chosen market. Bold the characteristics.

Vladimir the ceo of autumn inc claims that a learning curve

Vladimir, the CEO of Autumn Inc., claims that a learning curve is a better option of identifying the growth of the company. His assistant, Mark, states that growth can be better assessed if a scale curve is used as it re ...

One example of informal communication is management by

One example of informal communication is "management by wandering around." Describe and evaluate this communication method.

Programming assignment 1 a prime number is a positive

Programming Assignment 1: A prime number is a positive integer evenly divisible by exactly two positive integers: itself and 1. The first five prime numbers are 2, 3, 5, 7, and 11. Sometimes two consecutive odd numbers a ...

What is a concrete example that demonstrates the

What is a concrete example that demonstrates the relationship between objectives and goals?

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As

Follow Us

© Copyright 2013-14 mywordsolution.com All rights reserved