A credit default swap (CDS) is a contract that protects lenders from borrower default. Learn how a CDS works, why they’re ...
Credit default swaps (CDSs) provide protection for investors in the event that the borrower defaults on their debt or loan. They can play a pivotal part in financial and investment industries, as they ...
In her recent impassioned Senate speech against the repeal of the swaps push-out provision of the Dodd-Frank Act, Senator Elizabeth Warren argued that a vote for repeal was a vote, “…[to] let ...
Prior to the financial crisis, few outside of Wall Street knew what Credit Default Swaps (CDS) were. But AIG's collapse and subsequent bailout made the once-obscure derivatives famous: the insurer ...
In September, NaBFID had launched a partial credit enhancement product to ease credit risks and improve the creditworthiness ...
Felix Salmon says that credit default swaps are just like bonds. Charles Davi says they are just like futures and forwards (actually, they are most like options), which are derivatives that provide ...
As Bear Stearns careened toward its eventual fire sale to JPMorgan Chase last weekend, the cost of protecting its debt, through an instrument called a credit default swap, began to rise rapidly as ...
Immediately after the administration announced last week that it would be sending legislation to Congress to regulate derivatives, “experts” in the media started repeating the erroneous statements ...
Credit default swaps are a financial derivative used to offset the risk of lending money. These financial tools are somewhat infamous in the modern era due to their role in the Great Recession.
When crisis strikes, humans naturally seek a simple explanation. In turn, simple explanations require simple causes. Until recently, sub-prime mortgages were assigned much of the blame for the Panic ...
Is the “Perfect Storm” Metaphor Appropriate for the Economic Crisis? “The metaphor of the perfect storm is inapt. The captain’s action does not influence the height of the waves. Fed Chairman Bernanke ...