10 Pages Posted: 30 Apr 2008
Date Written: 04/29/2008
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.
Keywords: Credit Default Swap, Bankruptcy, Hu, Black
JEL Classification: G30
Suggested Citation: Suggested Citation
By Wenchao Liao
By Kay Giesecke