The lack of supply of underlying credits and diminishing credit spreads has led to increasing leverage being used to boost returns, resulting in products such as collateralised debt obligations (CDOs) of CDOs being marketed to investors. Is this consistent with the credit risk transfer that is the basic premise of credit derivatives?
Brian Ranson, managing director, credit strategies group, Moody's KMV: One could argue that the growth of the credit default swap (CDS) market and the increase i
The week on Risk.net, October 6-12, 2017Receive this by email
- SGX, HKEX expect to be among first wave of Mifid II equivalence
- Leaked EU doc could shield legacy swaps from clearing grab
- Quantile, TriOptima face off in cleared swaps compression battle
- ABS set for revival under US Treasury’s liquidity buffer plans
- Quants stymied by lack of alternative risk premia flows data