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Europcar CDS ‘squeeze’ : a lesson for the Retail Army?

Jan 16, 2021 | Global Macro, Thematic

This is a farce, embarrassing the $9tn CDS market!!!!!

The problem stemmed from the terms of Europcar’s restructuring, which meant that most holders of its €1bn bonds were restricted from trading, preventing the debt from being included in the crucial auction that determined the swap payout.

Too few market makers and the auction is like a game where, like in a casino, the bank always wins…

Now, we have a gigantic volume of derivatives traded by the Retail Army. If professionals are losing money despite lawyers and Ph.D. asset manager… No know the rest…

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