Speaker: Jay Webb
Title: Credit Default Swaps
Affiliation: Centaurus Energy Advisors
Date: Friday, February 27, 2009
Place and Time: Room 101, Love Building, 3:35-4:30 pm
Refreshments: Room 204, Love Building, 3:00 pm

Abstract. Few financial instruments have seen their popularity grow as quickly, and then diminish as quickly as Credit Default Swaps. From less than 1 trillion dollars in outstanding notional value in 2000, to a peak of more than 60 trillion dollars in late 2008, the market experienced explosive growth and these instruments were hailed as miracles of modern finance. However, they have been criticized sharply for their role in the current financial crisis. In this talk, we will introduce these instruments, discuss their origins and commoditization, present the concerns that began to emerge as the market grew, and discuss some contrasting views regarding their exacerbation of the crisis. Finally, we will talk about the near future of the market.