Język Polski
English
Published
:
2014-06-30
The Role of Credit Default Swaps in the Emergence, Expansion and Transmission of Crisis Symptoms in the United States' Subprime Mortgage Market
Damian Siwica
Abstract
The financial crisis, which originated in the subprime mortgage market, spread rapidly through a number of transmission channels to engulf many segments of the international financial system. Debt market derivative instruments known as CDOs played a fundamental role in the transmission of credit risk from bank portfolios to the capital markets, and on to other financial institutions that would purchase Credit Default Swaps (CDS) to hedge against the risk. The article investigates the CDS market's role in the origin, expansion and transmission of the global financial crisis by looking at the concentration risk of the market, and at specific features of these instruments. The paper further examines whether CDSs ultimately had a stabilizing or an exacerbating effect.(original abstract)Keywords:
Financial crisis, Credit risk, Derivatives, Mortgage credit, Credit default swap (CDS)Details
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Siwica, D. (2014). The Role of Credit Default Swaps in the Emergence, Expansion and Transmission of Crisis Symptoms in the United States’ Subprime Mortgage Market. Zeszyty Naukowe Wyższej Szkoły Bankowej W Poznaniu, 54(3). Retrieved from https://journals.wsb.poznan.pl/index.php/znwsb/article/view/1125