Fed blog: Credit Market Arbitrage and Regulatory Leverage

In a companion post, we examined the recent trends in arbitraged-based measures of liquidity in the cash bond and credit default swap (CDS) markets. In this post, we turn to the mechanics of the CDS-bond arbitrage trade and explore how the costs and profitability of such trades might be affected by the finalization of the supplementary leverage ratio (SLR) rule in September 2014.

The full article is available here.

Related Posts

Previous Post
Four emerging tech trends to watch in capital markets (Premium)
Next Post
SEC fines broker-dealer for Reg SHO violations

Fill out this field
Fill out this field
Please enter a valid email address.

X

Reset password

Create an account