Credit Managers Expect Europe, U.S. CDS Gap To Widen.The article reports that credit portfolio managers see European and North American corporate and sovereign credit default swaps (CDS) to have different movements.DuganKevinDerivatives Week
aCredit risk, like volatility, will be positive for all counterparties when using unilateral CVA. So, as with volatility, an institution will need to buy significant notional amounts of CDS protection to hedge an increasing CVA when credit spreads widen. Single-name CDS protection should, in the...