A new measure of liquidity in single-name credit default swaps shows that liquidity in the market was highest around the time of the collapse of Lehman Brothers, according to Fitch Solutions, reports The Financial Times.
The findings support the claims of derivatives professionals and bodies, such as the International Swaps and Derivatives Association, that the CDS market is one of the few to remain reliably liquid throughout the credit crisis.
For the complete story, click here.