Better Double-Safe than Sorry? CDS Counterparty Risk Mitigation
In a recent post, we discussed the Oehmke and Zawadowski (2017) paper. The authors identify hedging, speculation, and arbitrage as
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central clearing
Central Clearing in CDS Markets – Solution to a Non-Problem?
The financial crisis 2007/2008 again revealed that counterparty risk is front and center in financial markets. A consequence of counterparty
Read moreCentral Clearing and CDS Market Liquidity
We supervised a thesis this semester on the impact of central clearing on market liquidity for credit default swaps (CDS).
Read moreBetter Central? Central Clearing and Counterparty Risk in OTC Markets
What is the relation between central clearing and counterparty risk? Intuitively, it seems clear that a central clearing counterparty (CCP)
Read moreBig Risks with Small Price Impact – Counterparty Risk Management in CDS
Why the discussion about central clearing of credit default swap (CDS) contracts? For one thing, central clearing increases transparency. Once
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