Credit derivatives: CDS of ABS myth exposed

Eight out of 10 investors say they have yet to use the heavily marketed trades

Those pushing for investors in asset-backed securities to take more of an interest in using credit default swaps got a bit of a shock at last month’s American Securitization Forum meeting in New York. More than half of those attending the conference said, in an audience poll, that they would not use CDS of ABS. Only 17% had actually used them, while 31% voted that they would be likely to do their first trade in the next 12 months.

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