Credit default swaps around the world

SM Bartram, J Conrad, J Lee… - The Review of …, 2022 - academic.oup.com
We analyze the impact of the introduction of credit default swaps (CDSs) on real decision-
making within the firm. Our structural model predicts that CDS introduction increases debt …

Shareholder bargaining power and the emergence of empty creditors

S Colonnello, M Efing, F Zucchi - Journal of Financial Economics, 2019 - Elsevier
Credit default swaps (CDSs) can create empty creditors who potentially force borrowers into
inefficient bankruptcy but also reduce shareholders' incentives to default strategically. We …

Credit default swaps and firm cyclicality

L Norden, C Yin, L Zhao - Journal of Financial and Quantitative …, 2023 - cambridge.org
We find firm cyclicality decreases by 40% after the inception of credit default swap (CDS)
trading. The effect stems from CDS firms' less aggressive asset growth in good times and is …

Credit default swaps and debt overhang

TY Wong, J Yu - Management Science, 2022 - pubsonline.informs.org
We analyze the impact of credit default swaps (CDSs) trading on firm investment, long-term
debt financing, and valuation. In our model, the firm is endowed with a real option to initiate …

Half-full or half-empty? Financial institutions, CDS use, and corporate credit risk

C Caglio, RM Darst, E Parolin - Journal of Financial Intermediation, 2019 - Elsevier
We construct a novel dataset that matches bank holding company credit default swap (CDS)
positions to detailed US credit registry data containing both loan and corporate bond …

Financial market development and firm investment in tax avoidance: Evidence from credit default swap market

HA Hong, GJ Lobo, JW Ryou - Journal of Banking & Finance, 2019 - Elsevier
Lenders reduce their monitoring efforts after hedging their credit risk exposure through credit
default swap (CDS) contracts, which are akin to insurance against borrowers' adverse credit …

Boosted credit ratings in China: the effects of credit enhancement on bond pricing

H Gao, Y Huang, J Mo - Available at SSRN 3549270, 2022 - papers.ssrn.com
Almost 25% of credit bonds issued in China between 2009 and 2019 received improved
issuance ratings, 97.1% of which used credit enhancement. We find that credit enhancement …

[图书][B] CDS and credit: Testing the small bang theory of the financial universe with micro data

Y Gündüz, S Ongena, G Tümer-Alkan, Y Yu - 2017 - econstor.eu
Does hedging motivate CDS trading and does that affect the availability of credit? To answer
these questions we couple comprehensive bank-firm level CDS trading data from the …

Dark knights: The rise in firm intervention by credit default swap investors

A Danis, A Gamba - Management Science, 2024 - pubsonline.informs.org
There have been several cases in recent years where credit default swap (CDS) buyers and
sellers intervene in the restructuring of a distressed firm. We show theoretically that this can …

The Relationship Between Credit Default Swap (Cds), Central Government External Debt Stock, and the Current Account Deficit in Türkiye

E Noyan, Aİ Özpençe - İnsan ve Toplum Bilimleri Araştırmaları …, 2023 - dergipark.org.tr
Debt ratios are often a static indicator of the borrowing situation in an economy. Since the
debt burden, interest burden, or ratio to the national income of an economy shows the …