Colonnello, Stefano; Efing, Matthias; Zucchi, Francesca - 2016 - Second draft: May 31, 2016
Credit derivatives give creditors the possibility to transfer debt cash flow rights to other market participants while retaining control rights. We use the market for credit default swaps (CDSs) as a laboratory to show that the real effects of such debt unbundling crucially hinge on shareholder...