How can I trade CDS

[xyannix]

Does anyone know how I can learn to trade CDS's ?

Where do they trade?

What are the tickers?

How do they trade?

I use Interactive Brokers...

 

[SideShowBob]

You can buy a synthetic CDS. Take $1 billion and flush it down the toilet. Voila, you just bought a synthetic CDS.

 

[dafugginman]

great question, though i'm afraid to hear the response

(probably need to be an institution or have an institution sized account)

 

[rickf]

No word yet on where/how they trade, but I suspect you'll need rahter deep pockets to do so -- or that they'll be available only to institutions.

That said, my first response was to say go trade BAC, C, MS, GS, XLF, AIG as a proxy for CDS.

 

[total_keops]

From what I know:
CDS are traded over the counter with another party. Since the other party has to believe you can repay him a retail investor/trader is not a good party.
Also, there is a question of size, you need all the legal setup to trade CDS so they do business when there is big size deals.
So, no chance, buy puts instead

 

[brocklanders]

ICE just recently received approval to start trading these things. Maybe they will show up on IB soon. Right now I think it is unavailable though.

 

[xyannix]

I see the ICE just got approval to clear them but they website shows no code for credit default swaps.

I can buy puts on the financial institutions but I like to have real time quotes on CDS' so that you can see the whole market.

 

[Rehoboth]

A bloomberg terminal will give quotes of them

 

[Gizzz]

Beware
Those are evil

 

[taclander]

I didn't see ICE, but I thought I just read the CME was approved to trade them. Maybe I misread?