Predictability dynamics of emerging sovereign CDS markets

C-Tier
Journal: Economics Letters
Year: 2017
Volume: 161
Issue: C
Pages: 5-9

Score contribution per author:

0.335 = (α=2.01 / 3 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We compare the time-varying weak-form efficiency of Credit Default Swap (CDS) markets of 15 emerging countries by using permutation entropy approach. We find that CDS markets have different degrees of time-varying efficiency. Using several robustness test, we find that Thailand, China, South Korea and Malaysia have the most efficient CDS markets while South Africa, Colombia and Turkey are the least efficient. Our results show that CDS markets can be efficient even in the crisis episodes. Our findings also suggest a strong negative relation between sovereign risk and CDS market efficiency.

Technical Details

RePEc Handle
repec:eee:ecolet:v:161:y:2017:i:c:p:5-9
Journal Field
General
Author Count
3
Added to Database
2026-01-25