Hedge funds cut CDS positions as basis trades diminish
Hedge fund purchases of credit default swaps (CDSs) have waned in response to diminishing opportunities in CDS basis trades.
The combined gross notional of all CDS contracts traded with dealers peaked in mid-2014 at $1.1 trillion, and has since fallen precipitously, to $375 billion at end-2017.
Hedge funds have been net buyers of credit protection, particularly in single-name CDS, throughout this period. The Bank for International Settlements (BIS) posits this is likely because of the
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact [email protected] to find out more.
You are currently unable to copy this content. Please contact [email protected] to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email [email protected]
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email [email protected]
More on Risk Quantum
