“The proposed ban on naked short selling sovereign credit default swaps in member states will reduce liquidity in the CDS market, leading to increased volatility of CDS prices, undermine confi dence in member state sovereign bonds, and make it more expensive for member states to fi nance budgets.”
“The proposed ban on naked short selling sovereign credit default swaps in member states will reduce liquidity in the CDS market, leading to increased volatility of CDS prices, undermine confi dence in member state sovereign bonds, and make it more expensive for member states to fi nance budgets.”
—Andrew Shrimpton, a member in regulatory compliance at Kinetic Partners in London, in response to an E.U. agreement to ban so-called naked credit default swap trading on sovereign debt.
Tight funding levels and an abundance of investor cash made for brisk MTN issuance in 2025. The story may change in 2026, with public market issuance named as one factor that could crowd out private placements. But a broadening Asian bid for MTNs offers hope for the market, writes Diana Bui