This book, unique in its composition, reviews the academic empirical literature on how CDSs actually work in practice, including during distressed times of market crises. It also discusses the mechanics of single-name and index CDSs, the theoretical costs and benefits of CDSs, as well as comprehensively summarizes the empirical evidence on important aspects of these instruments of risk transfer. Full-time academics, researchers at financial institutions, and students will benefit from the dispassionate and comprehensive summary of the academic literature; they can read this book instead of identifying, collecting, and reading the hundreds of academic articles on the important subject of credit risk transfer using derivatives and benefit from the synthesis of the literature provided.

Part I: The CDS Market and Product Mechanics

Chapter 1: Overview of CDS Products and Market Activity
Chapter 2: Single-Name CDSs
Chapter 3: Loan-Only CDSs
Chapter 4: Multi-Name and Index CDSs
Chapter 5: Asset-Backed CDSs
Chapter 6: CDS Execution and Clearing Mechanisms
Part II:  Potential Benefits and Costs of CDSs
Chapter 7: Potential Benefits of CDSs
Chapter 8: Potential Costs of CDSs
Part III:  Empirical Evidence on the Benefits, Costs, and Inter-Market Relations of CDSs
Chapter 9: The Informational Content of CDS Spreads
Chapter 10: Implications of CDS Listings for Reference Entities and Creditors
Chapter 11: Inter-Market Basis Relations
Chapter 12: Inter-Connectedness and Systemic Risk
Appendix 1: Research Methodology
Appendix 2: Additional Tables.