Do Credit Derivatives Dampen Political Risk: The Case of Brazil Post 1998
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| Format: | Artículo científico |
| Language: | en |
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Portal Universia S.A.
2008
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| _version_ | 1876440984991039488 |
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| author | Martin Mullins |
| author_facet | Martin Mullins |
| contents | Do Credit Derivatives Dampen Political Risk: The Case of Brazil Post 1998 Martin Mullins Finbarr Murphy John F. Garvey Economía y Finanzas Brazil Financial markets Emerging economies Credit derivatives Credit Default Swaps In this paper we argue that the relationship between emerging market States, in this case Brazil, and the financial markets is changing due to developments in the area of financial risk mana - gement. The use of credit default swaps has ensured that default risk on Brazilian sovereign debt is shared by a large number of market participants. This means that the Brazil State is no longer faced with a homogenous group of investors capable of concerted action. Political risk is still present in the spreads offered by a sovereign debt issuer such as Brazil, but the dilution of the relationship between debt markets and investors means that in the future, financial crisis may be less probable. 2008 artículo científico 1988-7116 https://www.redalyc.org/articulo.oa?id=511851318002 en http://www.redalyc.org/revista.oa?id=5118 Journal of Globalization, Competitiveness & Governability / Revista de Globalización, Competitividad y Gobernabilidad / Revista de Globalização, Competitividade e Governabilidade application/pdf Portal Universia S.A. Journal of Globalization, Competitiveness & Governability / Revista de Globalización, Competitividad y Gobernabilidad / Revista de Globalização, Competitividade e Governabilidade (España) Num.2 Vol.2 |
| format | Artículo científico |
| id | redalyc_511851318002 |
| institution | Redalyc |
| language | en |
| publishDate | 2008 |
| publisher | Portal Universia S.A. |
| spellingShingle | Do Credit Derivatives Dampen Political Risk: The Case of Brazil Post 1998 Martin Mullins Economía y Finanzas Brazil Financial markets Emerging economies Credit derivatives Credit Default Swaps Do Credit Derivatives Dampen Political Risk: The Case of Brazil Post 1998 Martin Mullins Finbarr Murphy John F. Garvey Economía y Finanzas Brazil Financial markets Emerging economies Credit derivatives Credit Default Swaps In this paper we argue that the relationship between emerging market States, in this case Brazil, and the financial markets is changing due to developments in the area of financial risk mana - gement. The use of credit default swaps has ensured that default risk on Brazilian sovereign debt is shared by a large number of market participants. This means that the Brazil State is no longer faced with a homogenous group of investors capable of concerted action. Political risk is still present in the spreads offered by a sovereign debt issuer such as Brazil, but the dilution of the relationship between debt markets and investors means that in the future, financial crisis may be less probable. 2008 artículo científico 1988-7116 https://www.redalyc.org/articulo.oa?id=511851318002 en http://www.redalyc.org/revista.oa?id=5118 Journal of Globalization, Competitiveness & Governability / Revista de Globalización, Competitividad y Gobernabilidad / Revista de Globalização, Competitividade e Governabilidade application/pdf Portal Universia S.A. Journal of Globalization, Competitiveness & Governability / Revista de Globalización, Competitividad y Gobernabilidad / Revista de Globalização, Competitividade e Governabilidade (España) Num.2 Vol.2 |
| title | Do Credit Derivatives Dampen Political Risk: The Case of Brazil Post 1998 |
| topic | Economía y Finanzas Brazil Financial markets Emerging economies Credit derivatives Credit Default Swaps |
| url | https://www.redalyc.org/articulo.oa?id=511851318002 |