Credit Default Swaps: Can’t Live with Them, Can’t Live without Them

In this article Bonds&Loans is making a comprehensive overview of the CDS market. It underlines the latest efforts by the International Swaps and Derivatives Association (ISDA) to curb on the possibilities of fraudulent defaults. However the article notes that ISDA is not a regulator as such, but just an association of large stake holders that set best practices and issue recommendations.

In the Deriveum team we welcome most warmly the efforts by the industry to curb on fraud and abuse. We happily note that the best practices discussed by the ISDA members would be fully compatible with the token infrastructure; what is more in many cases the provisions made for security – the figure of the Resolver, the Modular Agreements and the ability to block accounts – go substantially beyond the current levels of protection. Best of all, unlike any other CDO out there the Deriveum token provides full certainty of payment.

To read the full article, please click on the link below.


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