Hedge debt default rates rise the Domino effect Chinese version of sina CDS fund exposure table: the letter Phi lag of false propaganda, long-term performance is lower than similar products, to buy the fund by the pit how to do? Click [I want to complain], Sina help you expose them! Hedge debt default rates rise the Domino effect Chinese version of CDS Pei Yu as the U.S. subprime mortgage crisis triggered CDS (credit default swaps), to a certain extent, became synonymous with "big short". The day before the China inter-bank market dealers association issued a formal "interbank market pilot credit risk mitigation business rules" and the relevant supporting documents, means that the Chinese version of the CDS landing. For a time the market. In order to better interpret the policy, to clarify the nature of CDS, at this stage to push CDS to pay attention to what issues? How to avoid systemic risk? U. S. subprime mortgage crisis can provide us with useful experience? Chinese version of CDS 2 "China Business News": at this point in time to push the CDS, and the current hot real estate market is related? CDS will become a speculative tool, and finally, like the United States to promote the real estate bubble burst? Zhao Yang: frankly, we’re a little over reading. CDS is just a normal financial hedging, risk control of financial products. In a sound financial market, CDS is indispensable. Before and after the 2008 financial crisis, the U.S. real estate market and the subsequent collapse of the crash, the fundamental risk is not well controlled, that is, too much of the subprime mortgage, but also to the wrong pricing. Back to the Chinese market, CDS is not necessarily directly linked to the real estate market bubble. Fundamentally speaking, the real estate market bubble depends on the specific policies of the government for the real estate market, such as the regulation of the mortgage, as well as the regulation of land supply. "China Business News": the introduction of CDS what policy intentions? Zhang Haiyun: in 2010, in response to the financial system of credit risk accumulation, to large scale of credit assets to provide "life jackets", launched the first domestic China credit derivatives — credit risk mitigation tools (CRM). We can call it "the first generation of Chinese version of CDS". This year launched the CDS product and CRM product structure is slightly different, can be called the second generation of Chinese version of CDS". Different from the internationally accepted CDS, CRM uses a "single subject debt" of the "simplified" clause. Since the CRM market opened, although substantial losses caused by breach of contract case less China credit bond market, but in recent years the rapid expansion of the scale of credit debt, bond defaults have become increasingly frequent, in addition, bad loans caused substantial loss of long-standing, and in recent years, bank lending scale and rising bad loans. With the rapid growth of credit risk hedging demand in stark contrast is continuing sluggish CRM market. In order to solve this mystery, I have demonstrated in detail the variety of drawbacks of CRM products. "The second generation of Chinese version of CDS" abandoned the CRM tool "single subject debt" structural design, instead of using the internationally accepted "Multi Standard Theory相关的主题文章: