EU funds net sellers of single-name CDS protection

60% of UCITS funds' single-name CDS gross notional exposures were sell contracts in October 2017

A small but significant group of European funds are selling single-name credit default swaps (CDS) without hedging their positions, leaving them open to big losses if a reference entity collapses.

Data published by the European Securities and Markets Authority (Esma) reveals that Ucits funds were net long single-name CDS exposures as of October 2017, meaning they sold more contracts than they bought.

Total single-name CDS gross notional exposures stood at €96 billion, of which €58 billion

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

Most read articles loading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here