As CDS and more specifically Sovereign CDS have come under political scrutiny, we thought it would be useful to have a more impartial view on the relationship between Sovereign CDS and the Sovereign spreads. Academic research centre EDHEC-risk devoted efforts to analyse the possible impact of one on to the other and came up with results that are worth looking at.

We went to a presentation of those results by Dominic O’Kane, who conducted this analysis and thought it would be interesting and hopefully useful to share them with you.

EDHEC_CDS_V5