Like their global counterparts, Asian investors are looking for cheap ways to exploit the potential and broadly forecasted widening in future credit spreads. One way to meet this objective is to use constant maturity credit default swaps (CMCDSs), which are designed to express views that the credit curve is likely to steepen in the future.
With CMCDS structures, investors can profit from credit-spread movements or mitigate spread widening, depending on their investment rationale. They can als
The week on Risk.net, July 7-13, 2018Receive this by email