New study reveals key factors driving international credit default swaps.
The article examines what factors influence credit default swaps (CDS) prices in the U.S., Europe, and Asia-Pacific markets. They looked at both company-specific and broader economic factors, as well as two new risk measures. The study found that the traditional factors affecting default risk also impact CDS pricing. Additionally, the interaction between economic conditions and individual company characteristics plays a significant role in determining CDS prices worldwide.