. Unlike the surge in the use of credit derivative instruments by banks in other countries, Australian banks preferred less use … of derivative instruments because of their complexity, liquidity issues, and other cultural reasons etc. A credit … derivative is a security/contract that allows investors to transfer credit risk to other investors who are willing to take it …

This paper examines the use of credit derivatives by US bank holding companies from 1999 to 2003 with assets in excess …'s loan portfolio and negatively or not related to other types of bank loans. The use of credit derivatives by banks is … of one billion dollars. Using the Federal Reserve Bank of Chicago Bank Holding Company Database, we find that in 2003 …

Can banks trade credit default swaps (CDSs) referenced on their current corporate clients at competitive prices, or are …