Bedendo, Mascia
[Verfasser:in]
;
Cathcart, Lara
[Sonstige Person, Familie und Körperschaft];
El-Jahel, Lina
[Sonstige Person, Familie und Körperschaft]
In- and Out-of-Court Debt Restructuring in the Presence of Credit Default Swaps
Erschienen in:CAREFIN Research Paper ; No. 24/2010
Umfang:
1 Online-Ressource (36 p)
Sprache:
Englisch
Entstehung:
Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments December 1, 2010 erstellt
Beschreibung:
This paper investigates whether the availability of credit insurance via credit default swaps (CDS) has inuenced the debt restructuring process in a sample of U.S. reference entities. Contrary to the predictions of the empty creditors theory, we do not find evidence that the presence of CDS favors bankruptcy over a private workout. The main determinants of the probability of filing for bankruptcy in the 2008-2009 crisis are leverage and short-term debt ratios, the proportion of secured debt, and a simplified debt structure concentrated on bank debt. A significant increase in private workouts follows the introduction of the 2009 Recovery Act