Empty creditors and strong shareholders: The real effects of credit risk trading. Second draft
- Publisher: Leibniz-Institut für Wirtschaftsforschung Halle (IWH) Halle (Saale)
G32 | G33 | G34 | debt decoupling | empty creditors | credit default swaps | shareholder bargaining power | real effects
Credit derivatives give creditors the possibility to transfer debt cash flow rights to other market participants while retaining control rights. We use the market for credit default swaps (CDSs) as a laboratory to show that the real effects of such debt unbundling cruci...