CDSs on CDOs
The International Swaps and Derivatives Association issued a standardised template for credit default swaps on collateralised debt obligations last summer. Jean-Paul Carbonnier looks at how the documentation is helping stimulate market liquidity
The market for credit default swaps on collateralised debt obligations (CDSs on CDOs) has accelerated in recent months, spurred on by standardised documentation released by the International Swaps and Derivatives Association (Isda) in June 2006. Although the market took its time getting to grips with the new documents, the impact has undoubtedly been positive.
"August saw a bit of a lull as the market digested the documents, but since the end of August we've seen quite a lot of volume growth,"
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