CDS: Selectivity Is Key

To read the full article, please choose one of the following options:

As we noted last week (see 'CDS: Rally Has Further To Go', August 5), the normalisation of Latin America's sovereign credit default swap (CDS) market since March has seen spreads reach touching distance of pre-crisis lows. This downtrend, mirroring the bounce in global equities and commodities, has not only been fuelled by a thawing of international credit markets, but also by a belief that the region's fundamentals have weathered the global recession without incurring significant long-term damage.