Credit Derivatives : Systemic Risks and Policy Options? /

Credit derivative markets are largely unregulated, but calls are increasingly being made for changes to this "hands off" stance, amidst concerns that they helped to fuel the current financial crisis, or that they could be a cause of the next one. The purpose of this paper is to address two...

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Bibliographic Details
Main Author: Kiff, John
Other Authors: Elliott, Jennifer, Kazarian, Elias, Scarlata, Jodi
Format: Journal
Language:English
Published: Washington, D.C. : International Monetary Fund, 2009.
Series:IMF Working Papers; Working Paper ; No. 2009/254
Online Access:Full text available on IMF
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520 3 |a Credit derivative markets are largely unregulated, but calls are increasingly being made for changes to this "hands off" stance, amidst concerns that they helped to fuel the current financial crisis, or that they could be a cause of the next one. The purpose of this paper is to address two basic questions: (i) do credit derivative markets increase systemic risk; and (ii) should they be regulated more closely, and if so, how and to what extent? The paper begins with a basic description of credit derivative markets and recent events, followed by an assessment of their recent association with systemic risk. It then reviews and evaluates some of the authorities' proposed initiatives, and discusses some alternative directions that could be taken. 
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700 1 |a Elliott, Jennifer. 
700 1 |a Kazarian, Elias. 
700 1 |a Scarlata, Jodi. 
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