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Does the tail wag the dog? : the effect of credit default swaps on credit risk

Subrahmanyam, Marti G.; Tang, Dragon Yongjun; Wang, … - 2012

Persistent link: https://www.econbiz.de/10009683369

Do Credit Default Swaps Matter After They Are Settled? Evidence from Debt Recovery Rates

Qi, Min - 2016

restructuring or bankruptcy filings and, presumably, should cease to be relevant after the settlements. However, we find that the … for the bankrupt firms with CDS contracts before bankruptcy filings. This CDS effect on recovery rates is more pronounced … for bonds than for loans. The overall evidence is consistent with the view that CDS trigger earlier bankruptcy filings …

Persistent link: https://www.econbiz.de/10013005997

The Leverage Externalities of Credit Default Swaps

Li, Jay Y. - 2015

This paper provides the first empirical evidence of the externalities of credit default swaps (CDS). We find that a firm's leverage is lower when a larger proportion of its revenue is derived from CDS-referenced customers. This finding is robust to alternative samples and measures, placebo...

Persistent link: https://www.econbiz.de/10013032003

The Leverage Externalities of Credit Default Swaps

Li, Jay Y. - 2014

This paper provides the first empirical evidence of the externalities of credit default swaps (CDS). We find that a firm's leverage is lower when a larger proportion of its revenue derives from customers referenced by CDS. This finding is robust to alternative samples and measures, placebo...

Persistent link: https://www.econbiz.de/10013062471

Credit default swaps, exacting creditors and corporate liquidity management

Subrahmanyam, Marti G.; Tang, Dragon Yongjun; Wang, … - 2016

Persistent link: https://www.econbiz.de/10012200984

Credit Default Swaps, Exacting Creditors and Corporate Liquidity Management

Subrahmanyam, Marti - 2017

We investigate the liquidity management of firms following the inception of credit default swaps (CDS) markets on their debt, which allow hedging and speculative trading on credit risk to be carried out by creditors and other parties. We find that reference firms hold more cash after CDS trading...

Persistent link: https://www.econbiz.de/10012965176