Credit default swaps (CDS) were stigmatized for their role in the financial crisis, but a new exchange-traded version may breathe life back into the notion of CDS as a tool that companies can use to analyze and potentially hedge credit risk.
“Anything we can do that sheds more light on corporate liquidity and credit is fabulous,” says Jerry Flum, CEO of CreditRiskMonitor, which provides real-time financial analysis and news.
Both the Chicago Board Options Exchange (CBOE) and the Chicago Mercantile Exchange launched credit default products in 2007, just as the financial crisis was beginning to unfold. The products never got off the ground, partly because CDS were named a factor in the global financial meltdown and the collapse of AIG and other financial giants, and partly because the exchange-traded products were difficult to customize to users' needs.
Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.
Your access to unlimited Treasury & Risk content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Thought leadership on regulatory changes, economic trends, corporate success stories, and tactical solutions for treasurers, CFOs, risk managers, controllers, and other finance professionals
- Informative weekly newsletter featuring news, analysis, real-world case studies, and other critical content
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the employee benefits and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
