corporate bonds and credit default swaps (CDS) by large financial institutions, we show that simultaneous transactions in both … markets are rare, with an average institution having an 11 percent probability of transacting in both the CDS and bond markets … speculative positions in CDS by 13 cents per dollar of bond transactions, and their hedging positions by 13 cents per dollar of …

provide strong property rights protection. Using a novel credit default swaps (CDS) data set covering government and corporate … corporate credit risks (all else equal, a 100 basis point increase in the sovereign CDS spread leads to an increase in corporate … CDS spreads of 71 basis points); 2) the sovereign-corporate relation varies across corporations, with state …