China has published rules on credit default swaps (CDS), marking the launch of a much-needed hedging tool in the country’s corporate bond market, which has witnessed increasing defaults.
The guidance was published on the website of the National Association of Financial Market Institutional Investors (NAFMII), which supervises issuance of commercial debt and some other types of bonds in China’s interbank bond market.
On Thursday, Reuters had reported that NAFMII was preparing to formally approve CDS as a hedging tool for the interbank market. Defaults have risen sharply over the past year and a half and investors are increasingly looking for ways to hedge risks.
China publishes rules on credit default swaps to help risk-hedging
China has published rules on credit default swaps (CDS), marking the launch of a much-needed hedging tool in the country’s corporate bond market, which has witnessed increasing defaults.
The guidance was published on the website of the National Association of Financial Market Institutional Investors (NAFMII), which supervises issuance of commercial debt and some other types of bonds in China’s interbank bond market.
On Thursday, Reuters had reported that NAFMII was preparing to formally approve CDS as a hedging tool for the interbank market. Defaults have risen sharply over the past year and a half and investors are increasingly looking for ways to hedge risks.
Would you like to comment on this article?
Register (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Trending
Latest Videos