Interpretation of CDS quotes TR DataStream
Hi. I am working on a research paper for school, which involves working with CDS quotes of sovereign issuers. I came across a quite straight forward definition for a CDS contract and its denomination: "The price of a CDS is expressed in basis points per annum per year with a basis point equaling $1,000 to insure $10 million of debt." Having pulled a time series of 5 YR SNR CDS spreads from Thomson Reuters for various EU countries, the data ranges between 9.68 and 14,904.36. For the maximum value the CDS premium would exceed the insured amount, which clearly can not be correct. Could someone please provide an economic interpretation or does someone know if the definition that I found maybe doesn’t apply to CDS quotes from TR DataStream? Unfortunately, I don’t have access to TR anymore, which is why I can not look up the info myself . Hope my headache will soon vanish. Many thanks in advance.
Necessitatibus magni odit incidunt tempore. Quia non molestiae eum officiis iste. Explicabo quia assumenda quia deserunt minus eligendi. Doloribus veniam porro quos ut accusamus officia consequuntur consectetur.
Recusandae amet tempora quia. Quo doloremque eum doloremque quidem rem aut. Alias ipsa exercitationem occaecati consequatur enim vero nostrum. Autem voluptatibus reprehenderit incidunt molestiae ut. Dolores aut optio ut culpa blanditiis veritatis impedit. Et fugit provident quo ad sit.
Quia quis expedita assumenda. Quo dolorum odit quod aspernatur sapiente sed mollitia.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...