Standard US CDS contract sparks hedging worries
Plans to reshape the US single-name credit default swap (CDS) market are causing concerns among some credit portfolio managers, due to a limitation on their ability to get capital relief for hedges under Basel II.
An International Swaps and Derivatives Association group comprised of buy- and sell-side market participants has been working on changes to the standard North American CDS contract over recent months. The modifications are part of an effort to further standardise CDS contracts and
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