Sirius XM (RDO.F) May 2025 Dividend

CDS markets show China has most to lose in trade battle with U.S. Although we are barely halfway through it (at the time of writing), April 2025 seems assured to join March 2020, September 2008 and October 1987 in the rogue’s gallery of the most infamous months in U.S. financial market history. In just four trading sessions between April 3-8, the S&P 500 fell by more than 12%, only to rally 9.5% on April 9 - the eighth-largest daily percentage gain in the history of the index. The gyrations have been similarly ferocious in equity markets around the world, but little has been written about some of the truly remarkable moves taking place in credit default swaps (CDS). As a reminder, CDS is a credit derivative that provides a buyer financial protection in the event that a specific reference entity defaults on its debt obligations. If a fixed income desk invests in $100 million of German government bonds and buys a CDS contract of the same value referencing German sovereign debt, should the German government defaults during the five-year term of the contract, the desk will receive a $100 million payout from the counterparty that sold it the swap.