asset swaps vs cds forwarded bryan seyfried lon ect 30 03 2001 17 12 martin mcdermott 23 03 2001 18 47 john sherriff lon ect ect bryan seyfried lon ect ect cc subject asset swaps vs cds john much time put something together issue fundamentally instruments represent credit risk e credit events contingent payments represent senior unsecured credit risk differences pricing therefore arise purely supply demand one would expect generally asset swap would lower cds liquidity many bonds demand asset swaps limited attaching one page note jp morgan claim one principal reasons cds expensive people hedging convertible bonds combining 1 call option equity 2 cds call cheap willing pay cds driving price try synthesize something complete next week cheers martin