DEVELOPMENTS OF CREDIT DEFAULT SWAP CONTRACTS UNDER THE INFLUENCE OF GLOBAL CRISIS
Mircea Ciolpan, Cătălin ADAM
Abstract
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Mircea Ciolpan, Cătălin ADAM
Abstract
Open-access reader
This article aims to present the overall market for credit default swaps and their regulatory trends worldwide. Over the past year and a half, the states’ interest for CDS contracts has grown significantly, due to the global crisis and especially to the speculations on sovereign risks. If for ten years the regulatory discussions on credit derivatives market were only theoretical, the current period showed that a postponement of regulations may destabilize the country's efforts to get out of recession.
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This article aims to present the overall market for credit default swaps and their regulatory trends worldwide. Over the past year and a half, the states’ interest for CDS contracts has grown significantly, due to the global crisis and especially to the speculations on sovereign risks. If for ten years the regulatory discussions on credit derivatives market were only theoretical, the current period showed that a postponement of regulations may destabilize the country's efforts to get out of recession.
Key concepts: Credit default swap, iTraxx, Business, Swap (finance), Financial system, Financial crisis, Credit derivative, Credit default swap index