Uncertainty affects clearing volumes for single-name CDS

08/21/2013 | Risk.net (subscription required)

Hedge funds are remaining uncommitted when it comes to single-name credit default swaps as rules governing portfolio margining expire Dec. 7. Many worry that the amount of collateral needed will soar at that time. Consequently, clearing volumes for the instruments have been light: $60 million in single-name CDS, compared with about $2 trillion in client index trades.

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