Monday, January 22, 2018

credit derivatives - Why do CDS Spreads differ by currency?


last time using Bloomberg I found out that the CDS Spread for Italy 5Y CDS in USD was somewhere around 230bp whereas the Spread for Italy 5Y CDS in EUR was just around 130bp. I looked at other debtors (e.g. corporates). The phaenomenon stayed the same. What is the reason behind that? If a company defaults it defaults in all debt.




No comments:

Post a Comment

technique - How credible is wikipedia?

I understand that this question relates more to wikipedia than it does writing but... If I was going to use wikipedia for a source for a res...