Analysts Using Credit Default Swaps to Predict Currency Movements → Washingtons Blog
Analysts Using Credit Default Swaps to Predict Currency Movements - Washingtons Blog

Monday, February 23, 2009

Analysts Using Credit Default Swaps to Predict Currency Movements

High-level currency traders - such as analysts at Citigroup and Bank of Tokyo-Mitsubishi - are using credit default swaps to analyze the trend of currencies.

Specifically, according to an article in Bloomberg, many traders believe that the level of higher credit default swaps against a given country, the worse that nation's currency will do.

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