Misconceptions about CDS

Tabb group의 새로운 레포트.
주된 내용은 CDS 문제가 CCP로 해결될 수 있다는 오해가 확산됨을 경계



레포트를 소개한 뉴스원문임.
http://www.hedgeweek.com/articles/detail.jsp?content_id=298444


Misconceptions about the utility and purpose of credit default swaps continue to spread and efforts to defend them have been rebuffed by misguided regulatory efforts, according to research by Tabb Group.

Although the outstanding notional value of the CDS market has declined dramatically largely due to trade compression, annual revenues from central clearing, electronic trading and existing trade migration are set to grow at a compound annual growth rate of 12 per cent and reach USD174m by 2011, says senior analyst Kevin McPartland, author of the report (pictured).

The firm says the report addresses CDS misconceptions versus reality due to a lack of understanding and unfair treatment during the financial crisis, discusses how and where the market segment will continue to expand, examines the current state of major central clearing initiatives, and pinpoints issues to watch in the years ahead as the CDS market matures.

(...)

However, McPartland cautions that even when the first central clearing entity comes online, a number of challenges will remain that require further thought and innovation. Despite strong backing by regulators, some industry members believe the problems with a central clearing solution for the CDS markets go deeper. 'At least one alternative approach, NetDelta, a wholly-owned subsidiary of Knight Trading, currently exists, and others are likely in the works,' McPartland says.