Search
Abstract
This chapter aims to explore the evolving role of credit default swaps (CDS) in managing and transferring default risk from the perspective of banks from a holistic perspective. This chapter examines credit default swaps (CDSs) as derivative financial instruments that transfer credit risk on debt securities. While CDSs offer benefits such as risk management and risk trading, they also introduce potential systemic risks, as evidenced by their role in the 2008 financial crisis. The collapse of American International Group (AIG) serves as a case study, highlighting the complex interactions between banks, CDSs, and the broader financial system. AIG’s exposure to mortgage-backed securities through CDSs led to significant losses and threatened the stability of the financial system.
Citations
-
0
CrossRef
-
0
Web of Science
-
0
Scopus
Cite as
Full text
full text is not available in portal
Keywords
Details
- Category:
- Monographic publication
- Type:
- rozdział, artykuł w książce - dziele zbiorowym /podręczniku w języku o zasięgu międzynarodowym
- Language:
- English
- Publication year:
- 2023
- Bibliographic description:
- Mushafiq M.: Credit default swaps and banks// / : Elsevier, 2025,
- DOI:
- Digital Object Identifier (open in new tab) 10.1016/b978-0-44-313776-1.00112-4
- Sources of funding:
-
- Free publication
- Verified by:
- Gdańsk University of Technology
seen 38 times
Recommended for you
Merton-type default risk and financial performance: the dynamic panel moderation of firm size
- M. Mushafiq,
- S. A. Sami,
- M. K. Sohail
- + 1 authors