CREDIT DEFAULT SWAPS AS A WAY TO HEDGE AGAINST FORTHCOMING FUTURE UNCERTAINTIES IN THE DEBT MARKET OF UZBEKISTAN
DOI:
https://doi.org/10.5281/zenodo.17846996Abstract
The main purpose of issuing this article is to underline a specific shortage in Capital Market of Uzbekistan. In
greater detail, the absence of derivatives for debt instruments, in particular, corporate bonds as well as banking loans, and
this could clearly reduce the entire attractiveness of Uzbek Capital Market for foreign investors. Besides, Uzbekistan’s
international credit rating (based on S&P Global) is “BB-”, meaning “Non-investment grade or speculative”. For these
reasons, it is advisable to take measures to introduce credit default swaps in order to protect not only investors’ portfolios
but also commercial banks’ balance sheets from the defaults of borrowers. In our work, we have carried out some
statistical researches in the following indicators of economy: NPLs ratio (non-performing loans) between 2020-2025;
Annual inflation rate between 2016-2025 and National currency value between 2016-2025
Keywords
Credit default swaps (CDS), capital market, S&P global, annual inflation, banking loansReferences
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