Credit Default Swaps and the Canadian Context
نویسنده
چکیده
significant aspect of the evolution of credit markets has been the development of credit-risk transfer through the use of derivatives.1 Globally, one of the fastest-growing derivative products is the credit default swap (CDS). This article describes the basic mechanics of a CDS, assesses the impact of CDSs on market efficiency, and considers the implications of the growing market for CDSs for financial stability. Finally, the current state of the CDS market in Canada is assessed, together with the outlook for the future.
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