Vue gives private credit another reason to shun CDSs
Lenders prefer to hold risk themselves and recent issues suggest incompatibility with private markets
Despite the growth in the private credit sector in recent years, participants have shown little appetite to use credit default swaps to hedge-out risk in their sizeable loan books – and the drawn-out deliberations over Vue’s CDSs could give them another reason to stay away.
It took an industry group two months to determine whether the cinema chain’s recapitalisation constituted a credit event and
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