Home  Journals  Finance and Credit  28(556) - 2013 July

Credit and default swaps as shock-absorbers of financial crisis in Eurozone

Available online: 29 July 2013

Subject Heading: Foreign experience

JEL Classification: 

The cost of swaps of a credit default is some kind of indicator of a condition of this or that country, reflecting probability of a default of this or that economy. So, the cost of swaps of a credit default of Greece started increasing long before an aggravation of debt problems in this country and growth of cost of its sovereign bonds. This market was considerably reduced recently: The European Union approved the multilateral transaction in order to avoid the Greek default.

Keywords: credit and default swap, credit event, bond, debt, credit risk, buyer of protection, seller of protection, basic asset, hedging, Greek papers

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ISSN 2311-8709 (Online)
ISSN 2071-4688 (Print)

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