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Sovereign credit rating downgrades: an event study for European countries

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Detalhes bibliográficos
Resumo:This master thesis studies the effects of sovereign credit rating downgrade announcements on credit default swap spreads. The analysis is done using an event study methodology to examine the reaction of credit default swap spreads variations to negative credit rating announcements. These variations are studied by year, country, event and globally across all events and spreads. Results show that we can exclude the hypothesis that CDS spreads are not affected by rating announcements. Besides this we can exclude the possibility that downgrades are anticipated by CDS markets.
Autores principais:Carvalho, Rui Filipe Bastos
Assunto:Credit default swap Sovereign credit rating Downgrade Europe Event study Rating crédito soberano Europa Estudo de caso
Ano:2015
País:Portugal
Tipo de documento:dissertação de mestrado
Tipo de acesso:acesso restrito
Instituição associada:Universidade do Minho
Idioma:inglês
Origem:RepositóriUM - Universidade do Minho
Descrição
Resumo:This master thesis studies the effects of sovereign credit rating downgrade announcements on credit default swap spreads. The analysis is done using an event study methodology to examine the reaction of credit default swap spreads variations to negative credit rating announcements. These variations are studied by year, country, event and globally across all events and spreads. Results show that we can exclude the hypothesis that CDS spreads are not affected by rating announcements. Besides this we can exclude the possibility that downgrades are anticipated by CDS markets.