Taking the option of profit by default

Credit default swaps are old hat, now hedge fund managers are using options on CDSs to finesse their trades in the burgeoning credit strategy

The tremendous growth in the credit default swap (CDS) market is well documented. While much smaller than CDS, the market for credit 'swaptions' - options on single-name and index CDS - has also grown significantly over the past year or so.

Fitch set out to get a better understanding of what was currently happening in this market by surveying various broker-dealers involved in this product. We also looked at some of the unique structural features of these instruments.

Among the research's

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

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