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.

This entry was posted in General. Bookmark the permalink.