Credit Default Swap Spread (CDs) to Predict a Default

This paper investigates the ability of the Credit Default Swap Spread (CDSs) to predict a default. As a result, I started to build a regression and correlation model to examine and check if there is a relation between two important variables, which are Credit Default Swap (CDS) and Expected Default...

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محفوظ في:
التفاصيل البيبلوغرافية
المؤلف الرئيسي: Al Saadi, Khulood Salem (author)
منشور في: 2012
الموضوعات:
الوصول للمادة أونلاين:http://bspace.buid.ac.ae/handle/1234/559
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author Al Saadi, Khulood Salem
author_facet Al Saadi, Khulood Salem
author_role author
dc.creator.none.fl_str_mv Al Saadi, Khulood Salem
dc.date.none.fl_str_mv 2012-12
2014-03-19T11:00:39Z
2014-03-19T11:00:39Z
dc.format.none.fl_str_mv application/pdf
application/pdf
dc.identifier.none.fl_str_mv 90074
http://bspace.buid.ac.ae/handle/1234/559
dc.language.none.fl_str_mv en
dc.publisher.none.fl_str_mv The British University in Dubai (BUiD)
dc.subject.none.fl_str_mv credit default swap
Expected Default Frequency (EDF)
credit risk
counterparty risk
clearing house
credit rating
dc.title.none.fl_str_mv Credit Default Swap Spread (CDs) to Predict a Default
dc.type.none.fl_str_mv Dissertation
description This paper investigates the ability of the Credit Default Swap Spread (CDSs) to predict a default. As a result, I started to build a regression and correlation model to examine and check if there is a relation between two important variables, which are Credit Default Swap (CDS) and Expected Default Frequency KMV (EDF) KMV. The study concentrates on the degree of variation on the prices for both variables as I believe that if one variable, which should be a predictor, changes the other variable, it should respond to this predication and change its price too. The study concentrates on five U.S. financial institutions, which are Citigroup Inc., JP Morgan Chase & Co., Goldman Sachs Group, Lehman Brother, and Morgan Stanley from 16 January 2007 to 23 May 2011. In conclusion, my analysis approves that the CDSs is classified as either risk exposures accumulator or predictor from year 2007 based on the findings, which prove that there is a relationship between credit default swaps and KMV EDFs.
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network_name_str The British University in Dubai repository
oai_identifier_str oai:bspace.buid.ac.ae:1234/559
publishDate 2012
publisher.none.fl_str_mv The British University in Dubai (BUiD)
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spelling Credit Default Swap Spread (CDs) to Predict a DefaultAl Saadi, Khulood Salemcredit default swapExpected Default Frequency (EDF)credit riskcounterparty riskclearing housecredit ratingThis paper investigates the ability of the Credit Default Swap Spread (CDSs) to predict a default. As a result, I started to build a regression and correlation model to examine and check if there is a relation between two important variables, which are Credit Default Swap (CDS) and Expected Default Frequency KMV (EDF) KMV. The study concentrates on the degree of variation on the prices for both variables as I believe that if one variable, which should be a predictor, changes the other variable, it should respond to this predication and change its price too. The study concentrates on five U.S. financial institutions, which are Citigroup Inc., JP Morgan Chase & Co., Goldman Sachs Group, Lehman Brother, and Morgan Stanley from 16 January 2007 to 23 May 2011. In conclusion, my analysis approves that the CDSs is classified as either risk exposures accumulator or predictor from year 2007 based on the findings, which prove that there is a relationship between credit default swaps and KMV EDFs.The British University in Dubai (BUiD)2014-03-19T11:00:39Z2014-03-19T11:00:39Z2012-12Dissertationapplication/pdfapplication/pdf90074http://bspace.buid.ac.ae/handle/1234/559enoai:bspace.buid.ac.ae:1234/5592021-10-06T11:57:14Z
spellingShingle Credit Default Swap Spread (CDs) to Predict a Default
Al Saadi, Khulood Salem
credit default swap
Expected Default Frequency (EDF)
credit risk
counterparty risk
clearing house
credit rating
title Credit Default Swap Spread (CDs) to Predict a Default
title_full Credit Default Swap Spread (CDs) to Predict a Default
title_fullStr Credit Default Swap Spread (CDs) to Predict a Default
title_full_unstemmed Credit Default Swap Spread (CDs) to Predict a Default
title_short Credit Default Swap Spread (CDs) to Predict a Default
title_sort Credit Default Swap Spread (CDs) to Predict a Default
topic credit default swap
Expected Default Frequency (EDF)
credit risk
counterparty risk
clearing house
credit rating
url http://bspace.buid.ac.ae/handle/1234/559