Credit Default Swaps: An Update

TIME cover

By: Arjyo Mitra

  1. The CDS

A credit default swap (CDS) is a financial transaction that is based on the risk of a certain underlying event. It derives its value from its promise of protection from the debilitating effects of the event. However, its use in financial markets has evolved to serve more complex purposes than simply offering protection against risk.

Buyers and sellers are brought together in an arrangement in which the buyer of the CDS protection makes periodic payments (also known as “premiums” or “spreads”) to the seller. In exchange for these


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The Ethics of Minimum Wage Legislation

The fifth in SPI’s Inequality Series

By: May Leung wage legislation


Minimum wage legislation is hotly debated. A minimum wage is the lowest hourly, daily or monthly remuneration employers legally have to pay to workers. The main purpose of the legislation is to ensure employers, who usually have higher bargaining power in the labor market, do not exploit their workers and that workers earn a fair living wage.

Apart from doing good to labor, proponents of the minimum wage legislation also argue the legislation can benefit the employers


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Moral Cents

Financial EthicsMoral Cents is The Journal of Ethics in Finance, produced on a regular basis by the Seven Pillars Institute for Global Finance and Ethics. Click HERE to see the latest issues and read them in full.

Seven Pillars Institute for Global Finance and Ethics (SPI) and the Centre for Commercial Law Studies (CCLS) at Queen Mary University of London have a collaborative affiliation in their work on ethics, law, and regulation in finance. The goal of the collaboration is to foster a dialogue on important ethical policy issues affecting the financial services industry.

Read the Collaboration Announcement

Seven Pillars Institute for Global Finance and Ethics and IntegTree LLC have a collaborative affiliation. The two organizations plan to create online training programs in financial ethics and compliance management. The Programs will help financial institutions improve conformity with the law while also fostering ethical awareness.

Read the collaboration announcement.