This book, unique in its composition, reviews the academic empirical literature on how CDSs actually work in practice, including during distressed times of market crises. It also discusses the mechanics of single-name and index CDSs, the theoretical costs and benefits of CDSs, as well as comprehensively summarizes the empirical evidence on important aspects of these instruments of risk transfer. Full-time academics, researchers at financial institutions, and students will benefit from the dispassionate and comprehensive summary of the academic literature; they can read this book instead of identifying, collecting, and reading the hundreds of academic articles on the important subject of credit risk transfer using derivatives and benefit from the synthesis of the literature provided.

“The authors of this book have delved deeply into the academic literature on credit derivatives markets, and, by doing so, have drawn a number of important conclusions–as well as debunked some myths. We’re very pleased that what started out as a research study for ISDA has been further developed and expanded into this very useful and comprehensive book.” (Scott O’Malia, Chief Executive Officer, International Swaps and Derivatives Association)

“The authors have provided us with the ‘Rosetta Stone’ for CDS products, helping demystify these instruments through a comprehensive discussion of the evolution, benefits, and limitations of these important risk management tools. Citing rigorous academic work and empirical evidence, the authors have written a compelling and detailed overview of CDS products that policymakers, academics, and practitioners alike would benefit from reading.” (Walt Lukken, President and Chief Executive Officer, Futures Industry Association )

“The authors have provided an enormous service to market participants, regulators, other policy makers, researchers, and students, by collating, condensing, and making clear sense of a large body of knowledge regarding credit default swaps. This book will be the most widely cited and heavily used reference work covering the topic.” (Darrell Duffie, Dean Witter Distinguished Professor of Finance, Graduate School of Business, Stanford University)

“This beautiful book is at once comprehensive and succinct. Everything you could want to know about how CDS work and more importantly why they work is in these pages, lucidly explained.” (John H. Cochrane, Rose-Marie and Jack AndersonSenior Fellow, Hoover Institution, Stanford University)

Reviews the academic empirical literature on how CDSs actually work in practice, including during distressed times of market crises Discusses of the mechanics of single-name and index CDSs Explores the theoretical costs and benefits of CDS Unveils a comprehensive summary of the empirical evidence on important aspects of these instruments of risk transfer

GPSR Compliance The European Union's (EU) General Product Safety Regulation (GPSR) is a set of rules that requires consumer products to be safe and our obligations to ensure this. If you have any concerns about our products you can contact us on ProductSafety@springernature.com. In case Publisher is established outside the EU, the EU authorized representative is: Springer Nature Customer Service Center GmbH Europaplatz 3 69115 Heidelberg, Germany ProductSafety@springernature.com