With Friends Like This….

It’s one thing to get criticized by those who don’t understand or like the financial markets. It’s another when the criticism comes from someone who does. A recent Forbes op/ed is clearly in the latter camp. It’s unfortunate and disappointing that it is based on an outdated, inaccurate view of the CDS market.

Contrary to the article’s assertions, CDS trading volumes are publicly available, via the DTCC Trade Information Warehouse. This and other trading information has been available for some time and levels of activity in the CDS market are no surprise to financial market professionals.

In addition, market participants have long maintained that CDS prices should be viewed in context. They are just one indication of credit risk. Would anyone – Mr. Forbes included – buy a stock based on one metric?

ISDA response to ESMA MiFIR Review Consultation

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