Academic Journal
Regulation and the demand for credit default swaps in experimental bond markets
| العنوان: | Regulation and the demand for credit default swaps in experimental bond markets |
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| المؤلفون: | Matthias Weber, John Duffy, Arthur Schram |
| بيانات النشر: | Elsevier |
| سنة النشر: | 2024 |
| المجموعة: | University of St. Gallen: Research Platform Alexandria |
| الوصف: | Credit default swaps (CDS) played an important role in the financial crisis of 2008 leading to calls for regulation. Here, we seek to understand the impact of a CDS regulation that restricts the possibility to hold naked CDS. We use a controlled laboratory experiment analyzing CDS pricing in a bond market subject to default risk. Our results show that the regulation achieves the goal of increasing the use of CDS for hedging purposes while reducing the use of CDS for speculation. This success does not come at the expense of lower initial public offering (IPO) prices for the bonds or worse pricing of bonds or CDS in the secondary market. |
| نوع الوثيقة: | article in journal/newspaper |
| اللغة: | unknown |
| Relation: | European Economic Review; https://www.alexandria.unisg.ch/handle/20.500.14171/120698; https://doi.org/10.1016/j.euroecorev.2024.104745 |
| DOI: | 10.1016/j.euroecorev.2024.104745 |
| الاتاحة: | https://www.alexandria.unisg.ch/handle/20.500.14171/120698 https://hdl.handle.net/20.500.14171/120698 https://doi.org/10.1016/j.euroecorev.2024.104745 |
| Rights: | metadata-only |
| رقم الانضمام: | edsbas.AADFD5E7 |
| قاعدة البيانات: | BASE |
| DOI: | 10.1016/j.euroecorev.2024.104745 |
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