The sovereign credit default swap market has come under scrutiny from regulators across Europe in the wake of the Eurozone debt crisis. Some politicians accused speculators of using it to push spreads wider and reap quick profits – a trend they believe exacerbated the problems faced by some European countries.
Click here for a full version of the article, with charts and equations.
So far, however, there have been few studies devoted explicitly to the functioning of the sovereign CDS market. Gat