Trading of Saudi Arabia's CDS increases, DTCC says

04/4/2011 | Bloomberg

The Depository Trust & Clearing Corp. said that credit default swaps tied to Saudi Arabia are becoming some of the most active contracts in the world. The increase comes despite the fact that Saudi Arabia does not have any international debt. Instead, investors are using the swaps to speculate on contagion from political unrest in neighboring nations. Investors also use CDS to hedge debt that Saudi Arabia might sell down the road.

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