A new road to recovery

There are clear inconsistencies between the theory and practice of pricing credit default swap contracts in emerging markets, argues Manmohan Singh of the International Monetary Fund. Here, he proposes an alternative method for proxying recovery value

In times of distress, when a country loses access to markets, there is evidence that credit default swap (CDS) spreads are a better indicator for sovereign risk than indexes such as the EMBI+ sub-index for the country.

However, it is not easy to discern the variables that determine the level of CDS spreads in emerging markets – traders only quote the CDS spreads and not the inputs required to calculate such spreads.

In this article, we consider some evidence from Argentina and Brazil that

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Chartis RiskTech100® 2024

The latest iteration of the Chartis RiskTech100®, a comprehensive independent study of the world’s major players in risk and compliance technology, is acknowledged as the go-to for clear, accurate analysis of the risk technology marketplace. With its…

T+1: complacency before the storm?

This paper, created by WatersTechnology in association with Gresham Technologies, outlines what the move to T+1 (next-day settlement) of broker/dealer-executed trades in the US and Canadian markets means for buy-side and sell-side firms

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