Treasury Securities and the U.S. Sovereign Credit Default Swap Market

Austin, D. Andrew ; Miller, Rena S.

Library of Congress. Congressional Research Service.

关键词: Debt;    Finance;    Credit;    Loan defaults;   

RP-ID  :  R41932
RP-ID  :  R41932_2011Jul25

美国|英语

来源: UNT Digital Library

【 摘 要 】

This report explains how the sovereign credit default swap (CDS) market works and how such CDS price trends may illuminate fiscal stresses facing sovereign governments. Although CDS prices may be imperfect measures of the federal government's fiscal condition, some investors may try to glean information from those price trends. CDS prices have been playing an important role in the European government debt markets and could potentially affect U.S debt markets in the future. European policymakers have debated certain restrictions on types of sovereign CDS trading, and such calls for reform may be of interest to U.S. lawmakers.