Author Archives: Wenda Jiang

In Defense of Naked Credit Default Swaps

By | June 18, 2020

A credit default swap (CDS) is a credit derivative that shields protection buyers from the credit risks specified in the contract.[1] CDS has acquired public notoriety in the wake of the Global Financial Crisis and the European Debt Crisis.[2] On September 15, 2008, the $180 billion bailout of AIG thrust CDS into the spotlight for… Read More »