Where is the risk and opportunity for CDs in China-zhuxianduowan

Where is the risk and opportunity for CDS in China? Sina fund exposure platform: letter Phi lags behind false propaganda, long-term performance is lower than similar products, how to buy funds pit? Click [I want to complain], Sina help you expose them! Source: Wind news Hongkong news agency reported finishing, according to Reuters news, China’s CDS business has been officially approved, the relevant trading guidelines will be released in the near future. The 08 years of the financial crisis has been the emergence of derivatives, in the end what risks and opportunities? Credit default swaps (credit default swap, CDS CDS) refers to the buyer in mortgage loans down to the third party (the debtor), but worry about debt default repayment, you can buy a copy of the contract to the seller claims CDS. The buyer will pay the seller a certain amount of money on a regular basis, the seller to the buyer, if the contract period of the assets specified in the event of a credit event, the buyer will pay the corresponding loss. Why CDS now? In fact, "CDS" products have to test the water at the end of August this year, the China inter-bank market dealers association published a notice, decided to accept the CITIC Securities in 2016 the first phase of credit risk mitigation instruments (CRMW) establishment registration. This is China in 2011 after the emergence of such products, the market interpreted as CDS close to launch". Why five years later to restart such derivatives? Because this year the event of default. According to Wind information statistics show that as of early August, this year there are 39 bond default payment, involving 19 issuers, the default amount up to 24 billion 911 million yuan. Whether it is from the number of defaults or default amount of debt has reached 2 times last year. More trouble is that, as of the end of this year, the maturity of the overall bond market will also rise to the peak of the year, the total amount of 4 trillion and 440 billion yuan or more than last year increased by more than 20%. Among them, the iron and steel, coal, nonferrous metals production capacity of these three serious excess industry maturity maturity of nearly $700 billion, a record high, representing an increase of 30% over the same period last year. Tube kiyotomo Minsheng securities, Li Qilin and other analysts also said, "just against breaking" is accelerating, the market is badly in need of risk diversification tool, as long as the tool defect no longer, CDS will usher in rapid development. CDS brings the opportunity, the market has never been the same as now need to hedge credit risk products." CDS, a senior market analyst, said that it would help ease concerns after the crash and help investors to see the most risky companies. Everbright Securities fixed income chief analyst Zhang Xu believes that CDS can retain ownership of assets under the premise of the sale of assets to a counterparty includes credit risk, transaction and in order to separate the credit risk, stabilize hedge credit risk, mitigate systemic risk, but also helps the financial market price discovery function, liquidity of the bond market can also play a role in promoting. Ampang consulting (ANBOUND) on相关的主题文章: