proem

Economics, Econometrics and Finance

3 years ago

Greek Credit Events Trigger Immediate Cash Settlements in Financial Markets

Credit Events in Greece From 2008–2016 and the Effects on Settlement on Credit Default Swap. Investigation of Payments in Relation to Swap Spreads

Michel Guirguis

Paper Summary

Economics, Econometrics and Finance

3 years ago

Greek Credit Events Trigger Immediate Cash Settlements in Financial Markets

SSRN Electronic Journal

Credit Events in Greece From 2008–2016 and the Effects on Settlement on Credit Default Swap. Investigation of Payments in Relation to Swap Spreads

Michel Guirguis

Paper Summary

The article analyzes credit events in Greece from 2008-2016 and their impact on credit default swaps. It looks at payments in relation to swap spreads. Credit default swaps are financial tools used to manage credit risk. In a hypothetical scenario with a GR corporate bond, the buyer pays the seller annually based on the bond's premium. If a credit event occurs, the seller compensates the buyer for the loss.