The effect of credit rating announcements on CDS spreads - an empirical study of the European, American and Asian-Pacific CDS markets
Credit default swap spreads and credit ratings are two indicators and measures of credit risk. A credit default swap is a type of financial derivative that protects the holder from any losses incurred by the reference entity in the case of a negative credit event, in return for an annual premium, the spread. The main question asked in this essay is whether credit rating announcements have any sign
