Proposed repo market reform could kick-start China CDS

Industry hopes easier shorting of bonds will help banks hedge credit protection sales

China-flag---runners-web.jpg montage

The China Central Depository & Clearing Corporation (CCDC) is drafting new guidelines that could stimulate a stronger bond repo market in the world’s second-largest economy. As corporate bond defaults rise, participants are hoping greater bond repo volumes will facilitate better hedging of credit risk and contribute to fresh liquidity in the largely dormant credit default swap market.

“A significant issue in the repo markets, especially for foreign banks, has been the lack of clarity over the

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 individual account here: