Date of Graduation

5-2012

Document Type

Thesis

Degree Name

Bachelor of Science in Business Administration

Degree Level

Undergraduate

Department

Finance

Advisor

Santamaria, Sergio F

Reader

Rennie, Craig G.

Abstract

Credit default swaps are the leading indicators in bond and equity markets. The movement of credit default swaps can explain sovereign bond and equity market movements in distressed countries. Investors can take advantage of credit default swap volatility and movement in both sovereign credit and equity markets. In stable European countries, credit default swaps show little evidence of being the leading driver of sovereign bond and equity markets.

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