Majority of EU funds’ CDSs are ‘naked’ exposures

More than two-thirds of European funds’ single-name credit default swap (CDS) positions do not cover bonds held in their portfolios. The amount of these so-called ‘naked’ exposures suggests funds use CDSs mainly for speculative purposes, rather than to hedge corporate and sovereign debt books.

New research published by the European Securities and Markets Authority (Esma) showed that out of more than 4,000 single-name CDSs held by a sample of 381 fixed income and alternative funds, 71% were

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: