Credit default swap market retrospective: observations from the 2008–9 financial crisis and the onset of the Covid-19 pandemic

Contagion of credit risk: Comparative analysis before and after the pandemic of COVID‐19

“…Ivanov et al. ( 2020 ) show that “the continuous development and investment in central clearing over the last 10 years greatly contributed to the financial stability of the CDS markets during the Covid‐19 crisis, providing increased market transparency, capital efficiency and robust risk management services in the presence of record daily volumes, open interest levels and mark‐to‐market payments.”…”

“…However, during the period of pandemic crisis, the credit risk was connected in five countries. " Ivanov et al (2020) show that "the continuous development and investment in central clearing over the last 10 years greatly contributed to the financial stability of the CDS markets during the Covid-19 crisis, providing increased market transparency, capital efficiency and robust risk management services in the presence of record daily volumes, open interest levels and mark-to-market payments." Jinjarak et al (2021) indicate that "March 2020 divergence is well accounted for by COVID-specific risks and associated policies, mortality outcomes, and policy announcements, rather than traditional determinants.…”