Why credit default committees are a turnoff for the buy side

With high costs and little to gain from participating, investment firms seem content to leave the legal work to the banks

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At the next meeting of the influential committee in charge of judging bond defaults, two seats are likely to remain empty.

The seats should be filled by large non-bank users of credit default swaps. But, increasingly, buy-side firms are quailing at the cost and workload that comes with membership of the credit derivatives determinations committee.

“Everybody agrees it’s got to be done. Everybody