Last week saw the launch of the country's local market for credit default swaps (CDS), dubbed Credit Risk Mitigation (CRM), which serve as instruments to hedge against risks in the Chinese domestic corporate bond market.
In response to this development, Thomson Reuters will be the first to market with Chinese CDS pricing compiled daily from 11 contributors, available as of Friday, November 5. The new service will provide CDS prices for major Chinese companies direct to financial market professionals via its financial desktops including Thomson Reuters Eikon, the next-generation, fully-integrated trading desktop solution.
Complementing this new offering, Thomson Reuters Eikon will also provide integrated and sophisticated credit default probability calculations for 2,100 Chinese companies listed on the Shanghai and Shenzhen Stock Exchanges. This award winning data*, the first of its kind for the Chinese market, is powered by Kamakura Risk Information Services, the globally recognized provider of risk management information, processing and software.
Thomson Reuters CDS pricing data and the Kamakura credit default probability figures are critical tools for investors and traders seeking opportunities in the rapidly expanding Chinese fixed-income markets. Taken together, these two tools bring unprecedented transparency and actionable data to the Chinese credit markets and enable market participants to make better, and smarter, investing decisions.
According to, Henry Li, MD Thomson Reuters China, "Thomson Reuters new data and tools bring unique insight into managing risk and exposures to the world's second largest economy. Professional investors and traders turn to Thomson Reuters as a neutral source, relying on us for robust, intelligent data to help them better understand how to effectively manage their corporate and country risk in China."
Kamakura founder and Chief Executive Officer Dr. Donald R. van Deventer added, âKamakura Corporation has invested in state of the art credit risk technology for more than 20 years, led by the innovations of our research director Prof. Robert Jarrow. These innovations extend and go far beyond the 1970s work by Prof. Jarrowâs thesis adviser, Prof. Robert Merton. Kamakura is very pleased to partner with Thomson Reuters to bring state of the art credit risk modeling to greater China.â
* Thomson Reuters Creditviews, along with Kamakura, was named a winner of the Credit Magazine 2010 Credit Innovation Award for its Market Premium Ratio solution using Kamakura Corporationâs KRIS default probabilities.