Idiosyncratic and Systemic Risk in the European Corporate Sector A Cdo Perspective

Author/creator Lu, Yinqiu Author
Other author Chan-Lau, Jorge A. Author
Format Electronic
Publication InfoWashington : International Monetary Fund
Description35 p.
Supplemental ContentFull text available from Ebook Central - Academic Complete

Summary Annotation Systemic risk remains a major concern to policymakers since widespread defaults in the corporate and financial sectors could pose substantial costs to society. Forward-looking measures and/or indicators of systemic default risk are thus needed to identify potential buildups of vulnerability in advance. In this paper, we explain how to construct idiosyncratic and systemic default risk indicators using the information embedded in single-tranche standardized collateralized debt obligations (STCDOs) referencing credit derivatives indices. As an illustration, both risk indicators are constructed for the European corporate sector using midprice quotes for STCDOs referencing the iTraxx Europe index.
Access restrictionAvailable only to authorized users.
Technical detailsMode of access: World Wide Web
Genre/formElectronic books.
ISBN9781451909012
ISBN1451909012 (E-Book) Active Record
Stock number00013468

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