The Credit Default Swap Basis (Bloomberg Financial)

An up-to-date resource on the intricacies of the credit defaultswap basis While credit default swaps and credit derivatives are of greatconcern to many in the field of finance, the Second Editionof The Credit Default Swap Basis does not directly focus onthese issues. It is instead about an aspect of CDS behavior, thebasis, which is of importance to all users of CDS products. Anunderstanding of the basis is essential to anyone involved in thecredit-risky debt capital markets, whether you're an investor,trader, or broker.The credit default swap basis (the basis) defines therelationship between the cash and synthetic credit markets. Financeprofessionals need to understand the drivers of the basis in orderto better undertake investment and value analysis, and for tradingpurposes. In this updated Second Edition, author MooradChoudhry, a market practitioner who has published widely in thefield of credit derivatives, explores this dynamic discipline andexamines the structural changes in the CDS market, including newsettlement mechanisms and contract standardization. Along the way,he describes how basis pricing has changed in the aftermath of thefinancial crisis and what that change means in regard to overallmarket and trading opportunities.The only book on basis issues of credit default swaps, itprovides practitioners with vital information on valuation, creditrisk assessment, and basis trading strategiesAddresses structural changes to the market, including theintroduction of central clearing houses in the U.S. and Europe andstandardization of contracts to reduce disputes about payoutsettlementsCovers the close relationship between the synthetic and cashmarkets in credit, which manifests itself in the credit defaultswap basisThe Credit Default Swap Basis, Second Edition offersinvaluable market insights to all financial professionals seeking adeeper understanding of credit derivatives and fixed incomesecurities.