ContractsProf Blog

Editor: D. A. Jeremy Telman
Valparaiso Univ. Law School

A Member of the Law Professor Blogs Network

Tuesday, April 21, 2009

How a CDS has more than one role in a bankruptcy . . .

We're all learning a good deal about credit derivative swaps (CDSs) these days.  The point of the CDS, of course, is to protect parties from defaults on bonds.  Turns out that this protection can have a significant effect on the incentives of those who whold bonds in failing companies, according to this piece by Charles Davi of the Atlantic.magazine.

[Frank Snyder]

http://lawprofessors.typepad.com/contractsprof_blog/2009/04/how-a-cds-has-more-than-one-role-in-a-bankruptcy-.html

| Permalink

TrackBack URL for this entry:

http://www.typepad.com/services/trackback/6a00d8341bfae553ef011570330e44970b

Listed below are links to weblogs that reference How a CDS has more than one role in a bankruptcy . . .: