Ismailescu, Iuliana; Phillips, Blake - In: Journal of Banking & Finance 52 (2015) C, pp. 43-61
In this paper, we analyze the determinants and effects of credit default swap (CDS) trading initiation in the sovereign bond market. CDS trading initiation is associated with a 30–150 basis point reduction in sovereign bond yields, with greater yield reductions accruing to higher default risk...
