We examine whether CDS contracts written on individual banks are effective leading indicators of bank financial … distress during a period of systemic bank crisis. Changes in CDS spreads are found to yield a robust signal of failure across a … measures of bank distress, including rating downgrades and accounting risk …

well known Swedish bank such as the Nordea bank. To minimize the interest and the credit risk of the contract the interest …

contagion effects across financial institutions. The empirical findings reveal that the recapitalization of a distressed bank …