The CDS's Application In Chinese Risk Management

Bonds as an equity investment in the financial markets is the most common investment tools, its importance is self-evident naturally. And credit default swaps are abroad in the bond market is the most commonly used to transfer the risk of credit derivatives, credit default swaps, so to speak in risk distribution, transfers,management and improve the efficiency of the market has an irreplaceable role.On September 23, 2016, the Chinese interbank market dealers association issued the revised "interbank market credit risk slow-release tool pilot business guide", in the original slow-release contract credit risk and credit risk, on the basis of slow-release credentials, add credit default swaps and credit bond paper two new products, so far China has its own credit default swaps, for capital market provides a new tool of risk management.Compared with the international exchange and derivatives association was founded in 1998 the standardization of the credit default swap, credit default swaps in China started late, so with the help of the international mature experience can be for the development of our country's credit default swaps and credit derivatives system play an important role. With the deepening of economic globalization, China's independent of the improvement of the credit default swap market to speed up the construction of financial market in China is of great significance.In this paper, based on the theory of credit default swap market, from its own development and characteristics of credit default swap pen and combined with the hot issues in the world in recent years, with its development situation analysis,summarizes the general rules and gives Suggestions for the development of credit default swaps in China.