LFIS’ Michael Hattab in Risk.net on the historic rates of the credit derivatives auctions
In this article published in Risk.net, LFIS joins experts to discuss the low recovery rates decided by CDS auctions this year.
LFIS’ senior portfolio manager, Michael Hattab, describes why the low CDS recovery rates this year were not a surprise for experts and investors in the sector. In this article, Michael outlines that the firms had already used cash reserves and sold/pledged valuable assets due to the coronavirus; therefore, the risk was already priced in CDS instruments.
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