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French Car Rental Firm's Credit Insurance Woes Send Warning to Speculators


French Car Rental Firm’s Credit Insurance Woes Send Warning to Speculators
By Irene García Pérez | January 21, 2021
A failed attempt to settle debt insurance on a struggling French car-rental company is the latest blow to the $9 trillion market in credit derivatives, but this time the focus is on speculators.
Protection buyers who didn’t hold any of Europcar Mobility Group’s underlying debt were left with nothing, due to a shortage of bonds to settle contracts at the auction on Wednesday.
Flaws in the instruments’ capacity to protect against losses have undermined confidence in the credit derivatives market in recent years. The problem with Europcar, which defaulted on its debt last month, was that bids exceeded available securities, driven both by bondholders that had already entered into a lock-up agreement and by traders that had placed outsized bets on a lucrative swaps payout. ....

Julien Petit , Jochen Felsenheimer , Athanassios Diplas , International Swaps , Derivatives Association , Europcar Mobility Group , Look Retail Group Ltd , Delphi Corp , New Look Retail Group , Ostrum Asset Management , ஜூலியன் பெட்டிட் , சர்வதேச இடமாற்றுகள் , வழித்தோன்றல்கள் சங்கம் , யூரோப்கார் இயக்கம் குழு , பாருங்கள் சில்லறை குழு லிமிடெட் , டெல்பி கார்ப் , புதியது பாருங்கள் சில்லறை குழு ,