Credit default swaps (CDSs) can create empty creditors who potentially force borrowers into
inefficient bankruptcy but also reduce shareholders' incentives to default strategically. We …

We use the advent of new credit default swap (CDS) trading conventions in April 2009—the
CDS Big Bang—to study how a shock to funding liquidity impacts market liquidity. After the …

Using a comprehensive dataset from German banks, we document the usage of sovereign
credit default swaps (CDS) during the European sovereign debt crisis of 2008–2013. Banks …

We construct a novel dataset that matches bank holding company credit default swap (CDS)
positions to detailed US credit registry data containing both loan and corporate bond …

Price fluctuations of sovereign default insurance are dominated by common risks. In
contrast, fluctuations in their quantities are primarily explained by country-specific factors …

This paper provides initial evidence on counterparty risk-mitigation activities of financial
institutions on the basis of Depository Trust and Clearing Corporation's (DTCC) proprietary …

This paper analyzes banks' usage of CDS. Combining bank-firm syndicated loan data with a
unique EU-wide dataset on bilateral CDS positions, we find that stronger banks in terms of …

Which markets do institutions use to change exposure to credit risk? Using a unique data set
of transactions in corporate bonds and credit default swaps (CDS) by large financial …

Credit default swaps on firm debt enable creditors to hedge against default, disincentivizing
them to participate in firm restructuring. This" empty creditor" effect was neutralized by a …

We study the influence of credit default swaps (CDS) trading on the costs of bond
intermediation. After CDS initiation, CDS firms pay 12% to 28%(8 to 20 basis points) lower …