In Defense of Credit Default Swaps
New York University School of Law
This paper is for the most part a refutation of the works of Hu and Black on the incentives created by credit default swaps in the bankruptcy context. We show that Hu and Black's concerns over empty voting and negative economic interest in the bankruptcy context are entirely without merit.
Number of Pages in PDF File: 10
Keywords: Credit Default Swap, Bankruptcy, Hu, Black
JEL Classification: G30
Date posted: April 30, 2008