Buyers and sellers of CDSs

CDS guide: market participants

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Unsurprisingly, commercial banks are the largest players in the CDS market. According to figures compiled by the British Bankers’ Association (BBA), banks accounted for 52% of the protection buyers market and 39% of the protection sellers market in 2001. The BBA expects both these shares to drop by 2004, to 47% and 32% respectively. That would still make banks dominant in the market for protection buying, but in terms of protection selling they would be overtaken by insurance companies, the