Keywords: Credit default swaps, risk, asset swaps, financial engineering, synthetic CDOs
Abstract: The credit derivatives market is emerging as a potentially important new development that may help shape the overall financial markets in the years to come. In this paper, I provide a brief overview of the credit derivatives market and assess its future potential in the creation of private-sector instruments that are virtually free of default risk, and, thus, may be appealing to investors who currently favor the safety of U.S. Treasury securities.
Full paper (197 KB PDF)
Home | FEDS | List of 2001 FEDS papers
To comment on this site, please fill out our feedback form.
Last update: November 30, 2001