Credit Default Swap (CDS) Data
The Ultimate Guide to Credit Default Swap (CDS) Data 2021
What is Credit Default Swap (CDS) Data?
Credit default swap data is data from consumers who want to reduce the amount of loss that they have from this debt. Usually a contract is signed between the borrower and the company providing the funds and protection. This data collected would have this information on it, including the person’s agreement that they had made with the company.
How is Credit Default Swap Data collected?
The data is collected each time someone chooses to fill out a credit default swap statement or contract. The information is then filed and stored within a database, and oftentimes, the information that is given can be sold to a third-party CDS data provider.
What are the attributes of Credit Default Swap Data?
The data attributes for the credit default swap are generally just pieces of information on the person such as their name, age, location, the type of debt they owe, income, and the agreement that they had with the company. All of this information can be provided to those who are searching to gain more information on this specific type of debt data.
What is an example of Credit Default Swap Data?
Usually thought of as the most common type of credit derivative, CDS data is made up of municipal bonds data, emerging markets bonds data, mortgage-backed securities data and corporate bonds data. These examples of CDS data are the most common types of OTC credit derivatives and are usually applied in the process of transferring credit exposure on fixed income products with the intention of hedging risks.
What is Credit Default Swap Data used for?
Those who are looking to purchase or use this information include debt collection companies. Whether they are looking to contact the individuals to help them with their debt, or if they are looking to provide the necessary coverage based in the contract - credit default swap information optimizes their operations. Debt and risk management can be are important use cases, and with many companies working with individuals who have it, credit default swap information can be vital to ensure companies make the most effective decisions.
How do banks use Credit Default Swap Data?
Banks use credit default swap data for hedging purposes. Hedging refers to the process of cushioning against the risk of severe price shifts. Banks are sometimes forced to hedge against the threat that a loan borrower may default on a borrowed loan. In such cases, the bank may be compelled to enter into a CDS contract as a form of risk protection. When this happens, in the event that the loan borrower fails to meet the obligations of loan repayment, the proceeds from the contract balance offset with the defaulted debt. However, in the absence of a CDS, the bank may resolve to sell the loan to another bank or finance institution.
Where can I get historical Credit Default Swap Data?
Data about the historical credit default swap market is available from three main sources. Data on an annual and semi-annual basis is available from the International Swaps and Derivatives Association (ISDA), which dates back to 2001, and from the Bank for International Settlements (BIS) since 2004. The Depository Trust & Clearing Corporation (DTCC), via its global repository Trade Information Warehouse, provides weekly publicly-available data dating back only one year. For a greater historical look-back, you will be required to buy the CDS data.
Where can I get real-time Credit Default Swap rates?
A great deal of CDS data is documented using systematic forms that are drafted and provided by the International Swaps and Derivatives Association (ISDA). The real-time credit default swap rates listed in the standards forms provided by ISDA can then be stored in databases for CDS data providers such as Trade Information Warehouse (DTCC). However, accessing real-time CDS swap rates may prove to be quite a task given the nature of confidentiality that is associated with this information. That is why data marketplaces like Datarade allow top providers and data vendors to list their CDS data, where users can buy real-time data by either a single-time CDS data purchase or through subscription services.
Do Credit Default Swap rates vary by country?
Yes, credit default swap rates vary by country. This is attributable to the fact that there exists a relationship between CDS spreads and the financial markets indicators that are associated with bonds, equities and foreign exchange markets for the market’s respective countries. As such, CDS rates are affected by the shifts in other components of financial markets, the universal outlook, and general CDS uncertainties. These factors are country-specific as they depend on a country’s unique market outlook in terms of foreign exchange, equity, bonds, and the overall CDS market data.
What is a naked Credit Default Swap?
Naked credit default swaps make room for investors and traders to acquire positions on assets without initially owning the assets. Naked credit default swaps are important because they make up a large amount of the market. In fact, it is estimated that close to 90 per cent of the CDS market is actually made up of naked CDS. In this regard, a naked position or uncovered position refers to a situation whereby an investor holds CDS without holding the underlying asset that is cushioned against by the CDS. It is a concept that gives investors and traders the opportunity to short-sell on the derivative markets.
Is FRED a source of Credit Default Swap Data?
Given that CDSs are not traded on an exchange traded market and there is no required reporting of transactions to a government agency, FRED is not a source of CDS data. FRED is only concerned with providing research data in the areas of macroeconomics, money and banking, and applied macroeconomics.
How can a user assess the quality of Credit Default Swap Data?
The quality of the data is checked through the verification of the information. The information is essential since you want to make sure who you are reaching out to is who the data states it is. The quality of the information may change from time to time though, so it is important to double-check the numbers when you’re looking at this type of debt data. It’s always worth asking for a data sample from a credit default swap data provider before subscribing to their data feed, so as to check that the data can be integrated effectively to your business.
Who are the best Credit Default Swap (CDS) Data providers?
Finding the right Credit Default Swap (CDS) Data provider for you really depends on your unique use case and data requirements, including budget and geographical coverage. Popular Credit Default Swap (CDS) Data providers that you might want to buy Credit Default Swap (CDS) Data from are Exchange Data International, FinPricing, Quandl, IHS Markit, and DTCC.
Where can I buy Credit Default Swap (CDS) Data?
Data providers and vendors listed on Datarade sell Credit Default Swap (CDS) Data products and samples. Popular Credit Default Swap (CDS) Data products and datasets available on our platform are EDI Credit Default Swap Data global coverage (2000 entities) by Exchange Data International, FinPricing Credit Spread Curve Data API - USA, Europe, Canada by FinPricing, and EDI Evaluated Fixed Income Pricing Service by Exchange Data International.
How can I get Credit Default Swap (CDS) Data?
You can get Credit Default Swap (CDS) Data via a range of delivery methods - the right one for you depends on your use case. For example, historical Credit Default Swap (CDS) Data is usually available to download in bulk and delivered using an S3 bucket. On the other hand, if your use case is time-critical, you can buy real-time Credit Default Swap (CDS) Data APIs, feeds and streams to download the most up-to-date intelligence.