Naked CDS Ban Called Counterproductive

10 Apr 2012

The ban on naked credit default swaps imposed by the European Parliament last October may be counterproductive and may cause harm to the banking system as it removes “one sovereign risk mitigation tool,” according to EDHEC-Risk Institute.

The ban on naked credit default swaps imposed by the European Parliament last October may be counterproductive and may cause harm to the banking system as it removes “one sovereign risk mitigation tool,” according to EDHEC-Risk Institute. The institute just released a working paper that analyzes the relationship ...

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