CDS and credit: The effect of the bangs on credit insurance, lending and hedging
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发表刊物：
Journal of Empirical Finance
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关键字：
Credit default swaps; Credit exposure; Hedging; Bank lending; Depository Trust and Clearing Corporation (DTCC)
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摘要：
We assess the differential impacts of “Big Bang” and “Small Bang” contracts and convention changes on market participants across CDS markets and couple comprehensive bank-firm-level CDS trading data from the DTCC to the German credit register containing bi-lateral bank-firm credit exposures. We find that after the Bangs, the cost of buying CDS contracts becomes lower for non-dealer banks and that, because of this decrease in insurance costs, these banks extend relatively more credit to CDS-traded and affected firms compared to dealers, and hedge more effectively. Hence, standardization lowers the cost of credit insurance and leads to a relative increase in credit extensions by non-dealer banks.
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论文类型：
期刊论文
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学科门类：
经济学
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一级学科：
金融
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卷号：
81
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ISSN号：
0927-5398
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是否译文：
否
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发表时间：
2025-02-01
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收录刊物：
SSCI
