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Marking the first such transaction after the Reserve Bank of India (RBI) issued fresh guidelines for the instrument, State Bank of India and Standard Chartered Bank India Wednesday carried out a Credit Default Swap (CDS) trade worth ₹25 crore. The trade involved a 1-year rupee CDS featuring REC, senior executives at Standard Chartered Bank told ET.
“This landmark transaction marks a pivotal moment in credit risk management and underscores the growing sophistication of financial instruments in the Indian market,” said Parul Mittal Sinha, Head – Financial Markets, India, Standard Chartered Bank.
Credit default swaps are derivative instruments that provide a form of insurance against the risk of default of the issuer of a bond.
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