adverse effects on firms whose shareholders have high bargaining power. After the start of CDS trading, the distance …

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 …