This study investigates the relationship between the geopolitical risk in Turkey arising out of the war and terror …-integrated relationship between CDS premium and geopolitical risk index. In addition, the time-varying symmetric and asymmetric test also … identifies causality between CDS premium and geopolitical risk, and establishes periods where the latter influences the former …

.Empirical results show that (i) Indonesia, followed by China and Mexico, are the main transmitters of sovereign credit risk volatility …. (ii) Among global factors, the volatility index (VIX), economic policy uncertainty (EPU), and global political risk (GPR …, policymakers, and researchers, emphasizing the importance of risk-aware investment strategies and cautious policy formulation in …

Central counterparty clearing houses (CCPs) provide risk management for OTC transactions. Using a global sample of … results suggest that sovereign CDS spreads are insignificantly affected by counterparty risk when a large fraction of globally … outstanding sovereign CDS is cleared through CCPs. Therefore, CCP clearing mitigates a major source of systemic risk in the CDS …

A credit default swap (CDS) enables a lender to hedge its risk exposure on a loan given to reference client. The lender … investments in risky, positive NPV projects at pre CDS levels. This action, however, also results in higher bankruptcy risk. Our …