The financial crisis that struck financial markets in 2008 was devastating for the global
economy. The impact continues to be felt in the market - most recently in sovereign defaults.
1 There are many questions as to the origin of the crisis and how the same events
may be prevented in the future. This dissertation explores two financial instruments: securitisation
and credit default swaps (CDSs) and attempts to establish the role they played
in the financial crisis. To fully understand the events that unfolded before and during the
crisis, a sound theoretical understanding of these instruments is required. This understanding
is important to discern the future of stable financial markets and to gain insight
into some of the potential risks faced by financial markets.
The South African perspective regarding securitisation, CDSs and the global financial crisis
is an important field of study. The impact of the crisis on South Africa will be explored in
this dissertation, as well as, the effect of the crisis on South Africa's securitisation market
(which has proved healthy and robust over the first part of the new millennium despite
the global slowdown of these instruments) and the CDS market. A key goal of this work is
to establish whether or not CDSs have been used in South Africa to hedge the credit risk
component of bonds linked to asset–backed securities (ABSs). This will provide an indication
of the maturity of the South African credit risk transfer (CRT) market and how South
Africa compares to more developed financial markets regarding complexity, regulation,
sophistication and market sentiment. Through the exploration and understanding of these
concepts, the efficacy of emerging economies to adapt to globalisation, and how welcome
financial innovation has proved to be in emerging markets will be addressed. / Thesis (M.Com. (Risk management))--North-West University, Potchefstroom Campus, 2012.
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:nwu/oai:dspace.nwu.ac.za:10394/7581 |
| Date | January 2011 |
| Creators | White, Johannes Petrus Lodewikus |
| Publisher | North-West University |
| Source Sets | South African National ETD Portal |
| Detected Language | English |
| Type | Thesis |
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