Credit Default Swaps Introduced in Russia | Business | The Moscow Times

Credit Default Swaps Introduced in Russia | Business | The Moscow Times:

"Credit default swaps, the financial instrument whose abuse catalyzed the 2008 financial crisis, may soon be seen in the Russian marketplace.

A draft of an order detailing the concept of CDSs was distributed to Russian banks by the Federal Service for Financial Markets on Wednesday, Vedomosti reported.

CDSs are essentially financial swaps in which the seller is paid in installments for agreeing to pay off a buyer's debt if they default on the loan. Invented in America during the 1990s, they shot to widespread use in 2003 as the credit market grew."

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