How can I trade CDS

Discussion in 'Trading' started by xyannix, Mar 14, 2009.

  1. xyannix


    Does anyone know how I can learn to trade CDS's ?

    Where do they trade?

    What are the tickers?

    How do they trade?

    I use Interactive Brokers...
  2. You can buy a synthetic CDS. Take $1 billion and flush it down the toilet. Voila, you just bought a synthetic CDS. :D :D :D
  3. great question, though i'm afraid to hear the response :(

    (probably need to be an institution or have an institution sized account)
  4. rickf


    No word yet on where/how they trade, but I suspect you'll need rahter deep pockets to do so -- or that they'll be available only to institutions.

    That said, my first response was to say go trade BAC, C, MS, GS, XLF, AIG as a proxy for CDS. :)
  5. From what I know:
    CDS are traded over the counter with another party. Since the other party has to believe you can repay him a retail investor/trader is not a good party.
    Also, there is a question of size, you need all the legal setup to trade CDS so they do business when there is big size deals.
    So, no chance, buy puts instead :p
  6. ICE just recently received approval to start trading these things. Maybe they will show up on IB soon. Right now I think it is unavailable though.
  7. xyannix


    I see the ICE just got approval to clear them but they website shows no code for credit default swaps.

    I can buy puts on the financial institutions but I like to have real time quotes on CDS' so that you can see the whole market.
  8. A bloomberg terminal will give quotes of them
  9. Gizzz


    Those are evil
  10. I didn't see ICE, but I thought I just read the CME was approved to trade them. Maybe I misread?
    #10     Mar 14, 2009