Jarrow, Robert A. - In: Annual Review of Financial Economics 3 (2011) 1, pp. 235-257
Credit default swaps (CDSs) are term insurance contracts written on traded bonds. This review studies the economics of CDSs using the economics of insurance literature as a basis for analysis. It is alleged that trading in CDSs caused the 2007 credit crisis, and therefore trading CDSs is an evil...
