Sovereign CDS market needs to learn lessons from Greece, dealers say

tearupcontract

Documentation for sovereign credit default swaps (CDSs) needs to be reviewed to incorporate lessons from the Greek debt restructuring, dealers say. Despite this, some participants argue the triggering of a credit event and subsequent auction on March 19 shows the instrument is fundamentally robust.

The final recovery rate determined by the auction was largely in line with market expectations, at 21.5%. The auction followed months of uncertainty over whether the Greek CDS contract would be trigge

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: