Credit default swaps on Russian companies face uncertain future
With CDS auctions on sanctioned companies unlikely, traders may have to rely on dealer estimates
Sanctions prohibiting the trading of Russian corporate debt threaten to undermine credit default swaps written on the companies concerned, and may force traders to rely on dealer estimates to settle contracts.
If a sanctioned Russian company defaults, the auction process used to value its corresponding CDS will not be able to function as designed, since such a process involves the physical
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