Bank Credit Default Spreads Increase; a Way to Protect Your Investments

Bloomberg news reported today “Bank Default Swaps at Record High as Fed Boost Bets Evaporate”, which means that the creditworthiness of banks are deteriorating. If you are interested in protecting your U.S. bank corporate bond holdings and don’t have access to the Institutional Over-the-Counter (OTC) Credit market for help, you can turn to the CBOE to insure your bonds with a credit instrument that can be traded through a securities account. It is a Credit Event Binary Option (CEBO) contract that increases in value as a U.S. bank’s credit quality deteriorates. If you’d like to learn more please visit www.cboe.com/credit or call John Angelos at 312-786-7063, or email him at angelos@cboe.com.  

 Best regards,

 

John G. Angelos