What is the real value of restructuring?

New angles

The implication of Goldman’s research is that protection buyers may be overpaying for the cheapest-to-deliver option in CDS contracts that include mod-R. The research was sparked earlier this year after some clients – particularly those hedging loan positions with CDSs – started asking questions about what exactly they were getting with contracts that included mod-R – and how much they should be paying for this kind of protection.

In the US, mod-R is currently the de facto standard CDS con

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