Similar Search Results

Measuring Credit Risk : CDS Spreads vs. Credit Ratings

Karagozoglu, Ahmet K - 2010

The prices of or spread on credit default swaps (CDS) theoretically represent the pure credit risk of a firm. Callen, Livnat and Segal (2007) note that although the CDS premium is related to credit ratings issued by the rating agencies, rather wide variation in CDS spreads are observed for firms...

Persistent link: https://www.econbiz.de/10013147945

Do Credit Default Swaps Matter After They Are Settled? Evidence from Debt Recovery Rates

Qi, Min - 2016

restructuring or bankruptcy filings and, presumably, should cease to be relevant after the settlements. However, we find that the … for the bankrupt firms with CDS contracts before bankruptcy filings. This CDS effect on recovery rates is more pronounced … for bonds than for loans. The overall evidence is consistent with the view that CDS trigger earlier bankruptcy filings …

Persistent link: https://www.econbiz.de/10013005997

Corporate Distress, Credit Default Swaps, and Defaults : Information and Traditional, Contingent, and Empty Creditors

Hu, Henry T. C. - 2019

Persistent link: https://www.econbiz.de/10012896650

Empty creditors and strong shareholders : the real effects of credit risk trading : third draft

Colonnello, Stefano; Efing, Matthias; Zucchi, Francesca - 2016 - This draft: October 16, 2016

Credit derivatives give creditors the possibility to transfer debt cash flow rights to other market participants while retaining control rights. We use the market for credit default swaps (CDSs) as a laboratory to show that the real effects of such debt unbundling crucially hinge on shareholder...

Persistent link: https://www.econbiz.de/10011547110

Empty creditors and strong shareholders : the real effects of credit risk trading : second draft

Colonnello, Stefano; Efing, Matthias; Zucchi, Francesca - 2016 - Second draft: May 31, 2016

Persistent link: https://www.econbiz.de/10011489100

My credit but your problem: the real effects of credit risk trading

Colonnello, Stefano; Efing, Matthias; Zucchi, Francesca - 2016

Creditors are increasingly transferring debt cash flow rights to other market participants while retaining control rights. We use the market for credit default swaps (CDSs) as a laboratory to show that such debt decoupling causes large adverse effects on firms whose shareholders have high...

Persistent link: https://www.econbiz.de/10011445695

Empty creditors and strong shareholders : the real effects of credit risk trading : fourth draft

Colonnello, Stefano; Efing, Matthias; Zucchi, Francesca - 2017 - This draft: May 17, 2017

Credit derivatives allow creditors to transfer debt cash flow rights to other market participants while retaining control rights. Theory predicts that this transfer can create empty creditors that do not fully internalize liquidation costs and liquidate borrowers excessively often. This empty...

Persistent link: https://www.econbiz.de/10011654225