Daily News: July 1, 2014

Default-Swap Volumes Complicate Caesars Turnaround

Bloomberg announced Caesars Entertainment’s ability to negotiate a debt exchange that keeps it out of bankruptcy is being complicated by a surge in credit-default swaps that would be profitable if the casino operator defaults.

According to Depository Trust & Clearing data compiled by Bloomberg , the net amount of outstanding contracts on Caesars debt rose to $2.14 billion on June 13, the most since November 2008, and outstanding derivatives have climbed 50% from a year ago as prices on shorter-dated swaps surged, indicating traders are putting on more wagers that the company will fail within 12 months.

To read the entire Bloomberg article, click here.

Previously on abfjournal: Bloomberg: Caesars Uses $100MM Lure for Asset Shift Distressed Debt, April 4, 2014