Moody’s advises caution over ‘wrapped’ CDSs


As the popularity of credit default swaps grows, the implications of referencing insured or ‘wrapped’ bonds in derivative transactions should be examined carefully, reckons rating agency Moody’s.

The overall wrapped market for credit default swaps (CDSs) amounts to $1.644 trillion and more than 97% of transactions were wrapped by the following five insurers: Ambac Insurance, Financial Guaranty Insurance, FSA Insurance, MBIA Insurance, and XL Capital Assurance, as well as the reinsurer XL Fina

To continue reading...

You need to sign in to use this feature. If you don’t have a 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: