risk, my results indicate that CDS spreads widen with the initiation of central clearing. I document that even though … dealer risk is priced in CDS spreads and an increase in dealer risk narrows spreads, the initiation of central clearing does … provide evidence that CDS volatility and central clearing widen CDS spreads jointly. Because the margin requirements of CCPs …

Following the 2008 financial crisis, regulation mandates the clearing of the CDS market through Central Clearing …-but-plausible failure threatens global financial market stability. This work examines CCP resilience following a large dealer member …'s default and the ensuing default contagion. In unwinding the defaulter's positions, the CCP faces the price impact of …

Through the lens of market participants' objective to minimize counterparty risk, we investigate central clearing in … suggest that central clearing always reduces counterparty risk for a sufficiently large number of clearing members. We show … that this is not the case - mostly because of loss sharing. Central clearing can increase counterparty risk, particularly …

reluctance to clear derivative trades in the absence of a central clearing obligation. We develop a comprehensive understanding … moving from a bilateral to a clearing architecture for derivative markets. Previous studies suggest that central clearing is … beneficial for single market participants in the presence of a sufficiently large number of clearing members. We show that three …

reluctance to clear derivative trades in the absence of a central clearing obligation. We develop a comprehensive understanding … moving from a bilateral to a clearing architecture for derivative markets. Previous studies suggest that central clearing is … beneficial for single market participants in the presence of a sufficiently large number of clearing members. We show that three …

Recent regulation mandating the clearing of credit default swaps (CDS) by a Central Clearing Counterparties (CCP), has …. This work investigates the potential failure of a CCP initiated by the default of a large dealer bank and the unwinding of … assets to varying degrees, based on their relative distance to defaulted assets. Key results show that liquidation lowers CCP …