The article examines the risks of contagion in the CDS market, focusing on the shift from default protection to credit risk trading. The researchers analyzed the structure of the EU CDS market, bilateral exposures, key market participants, and potential impacts of sovereign credit events. They identified interconnected market players, assessed default chain scenarios, and compared market-based and exposure-based contagion assessments. Key findings include a significant repricing of sovereign debt, implications for asset allocation and risk management, and the importance of broader EU financial system developments in understanding contagion risks.