China interbank association introduces CDS to interbank market - MNI

Latest headlines crossing the wires, via MNI, cited that China interbank association introduced credit default 9waps (CDS) to interbank market. The body also introduced credit linked note into the market. Further, China also published rules on the CDS this Friday.

On Thursday, Reuters had reported that the National Association of Financial Market Institutional Investors (NAFMII) was preparing to formally approve CDS as a hedging tool for the interbank market. Defaults have risen sharply over the past year and a half and investors are increasingly looking for ways to hedge risks.