CDS-implied risk of US delinquency: Implications for the US debt ceiling

Research output: Contribution to journalJournal Article peer-review

2 Scopus citations

Abstract

In this article, the authors use a structural credit risk model developed by Geske (1977) and generalized by Chen et al. (2014) to assess the delinquency risk of US Treasury debt implied by US sovereign CDS spreads. They also use the fitted structural model to determine the implied debt ceiling for the Federal Government.

Original languageEnglish
Pages (from-to)6-26
Number of pages21
JournalJournal of Fixed Income
Volume31
Issue number1
DOIs
StatePublished - 06 2021
Externally publishedYes

Bibliographical note

Publisher Copyright:
© 2021 University of Ljubljana - Veterinary Faculty. All rights reserved.

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

  1. SDG 10 - Reduced Inequalities
    SDG 10 Reduced Inequalities

Keywords

  • Credit risk management
  • Financial crises
  • Financial market history*
  • Fixed income and structured finance
  • Quantitative methods
  • Statistical methods

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