Title:

Sovereign CDS Dealers as Market Stabilizers, No. 20-13

PREVIOUS | NEXT

Sovereign CDS Dealers as Market Stabilizers, No. 20-13

DATE: December 2020

PART OF: AUTHORS: CONTRIBUTING AUTHOR:

ABSTRACT: Economists at the Richmond Fed analyze the role of dealer-provided liquidity in sovereign credit default swap markets. Using newly available data from the Depository Trust and Clearing Corporation, they track the positions held by large dealers during crises in Ukraine, Venezuela, and Argentina. The researchers find that large dealers tended to increase their provision of insurance as risk increased during those episodes — a finding that is consistent with the notion that they tend to act as market stabilizers during times of turmoil.

Download (pdf) View Full Text

Share this page:


Diversity is critical to the Federal Reserve, and we are firmly committed to fostering a diverse and inclusive culture throughout the Federal Reserve System. Collections within FRASER contain historical language, content, and descriptions that reflect the time period within which they were created and the views of their creators. Certain collections contain objectionable content—for example, discriminatory or biased language used to refer to racial, ethnic, and cultural groups. These viewpoints and attitudes are inconsistent with our values, but the original descriptions are retained to ensure that they are not erased from the historical record.
Save & Share
less

Mullin, John , Sultanum, Bruno and Federal Reserve Bank of Richmond. "Sovereign CDS Dealers as Market Stabilizers, No. 20-13," Economic Brief (December 2020). https://fraser.stlouisfed.org/title/6034/item/598532, accessed on May 26, 2022.

More Information
less

THEMES:

Metadata (XML)
Metadata (JSON)