Market Turmoil Shows Risk Of Dealer, Sovereign Credit Default Swaps Clearing
By Katy Burne and Jacob Bunge
Published August 10 2011 Dow Jones
The market impact of Standard & Poor's decision to strip the U.S. of its triple-A credit rating--including roiled bank stocks and rising costs for default insurance on other highly rated sovereigns--helps illustrate why credit derivatives tied to governments and major derivatives dealers are not yet being processed by central clearinghouses.
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