Credit-default swaps are an unfairly maligned derivative
They are back in the headlines. That is not entirely bad news
Vultures, rats and maggots are often the focus of disgust, less because of anything for which they can be blamed, and more because of the conditions with which they are associated. Death, disease and squalor carry a stigma that is hard to shake. Something similar is true of credit-default swaps, financial instruments that make headlines during market turmoil and economic misery.
This article appeared in the Finance & economics section of the print edition under the headline “The importance of maggots”
Finance & economics October 15th 2022
- Emerging markets look unusually resilient
- After China’s party congress, is there hope of better policymaking?
- As Europe falls into recession, Russia climbs out
- Rates are rising at unprecedented speed. When will they bite?
- Three economists win the Nobel for their work on bank runs
- Who will survive the fintech bloodbath?
- Credit-default swaps are an unfairly maligned derivative
- Energy shocks can have perverse consequences
From the October 15th 2022 edition
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