Credit Default Swaps and the Credit Crisis

@article{Stulz2009CreditDS,
  title={Credit Default Swaps and the Credit Crisis},
  author={Ren{\'e} Stulz},
  journal={Derivatives eJournal},
  year={2009}
}
  • René Stulz
  • Published 1 September 2009
  • Economics
  • Derivatives eJournal
The focus of the paper is on how credit default swaps may have contributed to the credit crisis. The author reviews the mechanisms of credit default swaps in their straightforward use — providing insurance against the defaults of individual companies — before turning to how they were used to take positions on subprime mortgages. He examines the size and growth of the credit default swap market an then turns arguments as to how credit default swaps may have contributed to the crisis. 
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