Credit default swaps (CDS) are very recent diversified products in global markets whose\nanalysis has attracted the interest of researchers since their appearance and intensified\nfollowing the subprime crisis in 2008. These products, whose marketing was really fast and\neasy, have become one of the largest credit derivatives markets but also one of the most\ncriticized. The purpose of this work is to answer the question: What is the impact of CDS on the\ncost of the public debt: case of the Euro zone? To answer this question, we will seek to identify\nthe role of these products in crisis via the analysis of the literature review and we will verify\nour theoretical results by an empirical approach on the sovereign debt market relative to the\nEuro zone crisis.
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