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

Description:

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.

Creator(s):
Location(s): United States
Creation Date: July 25, 2011
Partner(s):
UNT Libraries Government Documents Department
Collection(s):
Congressional Research Service Reports
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Total Uses: 37
Past 30 days: 1
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Creator (Author):
Austin, D. Andrew

Analyst in Economic Policy

Creator (Author):
Miller, Rena S.

Analyst in Financial Economics

Publisher Info:
Place of Publication: Washington D.C.
Date(s):
  • Creation: July 25, 2011
Coverage:
Place
United States
Description:

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.

Physical Description:

22 pages.

Language(s):
Subject(s):
Partner:
UNT Libraries Government Documents Department
Collection:
Congressional Research Service Reports
Identifier:
Resource Type: Report
Format: Text