We measure speculation in the CDS market and investigate its determinants. The CDS volume on a firm that exceeds its … outstanding debt (= naked CDS) indicates speculation since hedging can be ruled out. Using weekly CDS trading volume data for … actively traded U.S. firms during 2008-2012, we provide evidence for substantial speculation in the CDS market. The median …

An event study is used to assess the views of Keynes and Friedman on speculation. Speculative extremes are ranked by … little about the future in either case, suggesting that speculation is more than just random noise and supporting the view …

DeLong (1990a) et al. show that in the presence of positive feedback traders rational speculation can be destabilizing … overreact, underreact, or even move in the "wrong" direction; when rational speculation is destabilizing or stabilizing; and …

on Bluenext, by testing the relationship between futures and spot prices from the Fama (1970) framework. This approach is … based on the joint hypothesis of no risk premium and unbiasedness of futures prices. Cointegration tests are performed to … confirm the legitimacy of futures and spot prices being included in the regression, following the approach proposed by Balke …