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The Year That Was

29 December 2014 by lberuti

It would have been fun if that Grapple had depicted a Christmas tree, but sometimes you just have to accept the facts. At least it has some seasonal colours (tighter risk premia are green and wider are red; the brighter the colour, the bigger the move; the larger the rectangle, the bigger the volume), and enables you to see the major themes of 2014. Sovereigns are still the most actively traded CDS, and among them Italy and Russia were the busiest. The latter, together with Ukraine and Venezuela were the clear underperformers. In the bottom left corner, you can see that the energy sector, investment grade and high yield alike, had a very tough time. In the middle section, HET and RSH, which are on the verge of default, are 2 red hot spots. In the top right corner, you will find the great beneficiaries of the year: the European financials. With the help of Mr Draghi, all the boxes without exception are green. If you look carefully, you will be able to find your favourite credits and you will be able to see how they fared against the ones you dislike the most. In the meantime, the whole team of DataGrapple wishes you a happy New Year!