Dominika P. Galkiewicz – Humboldt University Berlin, Germany; University of Applied Sciences Kufstein Tirol, Finance, Accounting & Auditing, Andreas Hofer-Str. 7, 6330 Kufstein, Austria

Keywords:                     Fund;
Credit default swap;


Abstract: This study aims to investigate whether the comments made by funds regarding their use of CDS in periodic fund reports are con­sistent with their disclosed CDS holdings. For several funds in the U.S., the po­tential losses that may arise from selling CDS protection are almost as high as their net assets and in Germany, this potential can be even higher. The results of the study suggest that the comments provided by funds about their use of CDS in periodic reports are often vague and sometimes misleading. For in­stance, in Germany, funds that use more short than long CDS often claim that they only use long CDS for hedging purposes. This means that investors may need to analyze portfolio holdings to learn about the true investment behav­ior of funds. Based on the results, it is advisable for regulators in both coun­tries to strengthen their monitoring activity and implement more standard­ized disclosure policies.

9th International Scientific ERAZ Conference – ERAZ 2023 – Conference Proceedings: KNOWLEDGE BASED SUSTAINABLE DEVELOPMENT, hybrid – online, virtually and in person, Prague, Czech Republic, June 1, 2023

ERAZ Conference Proceedings published by: Association of Economists and Managers of the Balkans – Belgrade, Serbia

ERAZ conference partners: Faculty of Logistics, University of Maribor, Maribor (Slovenia); University of National and World Economy – UNWE, Sofia (Bulgaria); Center for Political Research and Documentation (KEPET), Research Laboratory of the Department of Political Science of University of Crete (Greece); Institute of Public Finance – Zagreb (Croatia); Faculty of Tourism and Hospitality Ohrid, University of St. Kliment Ohridski from Bitola (North Macedonia)

ERAZ Conference 2023 Conference Proceedings: ISBN 978-86-80194-72-1, ISSN 2683-5568, DOI:

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Suggested citation

Galkiewicz, D. P. (2023). Risk Disclosures Related to Credit Derivative Use by U.S. and German Corporate Bond Funds between 2004 and 2010 – An Evaluation. In V. Bevanda (Ed.), ERAZ Conference – Knowlegde Based Sustainable Development: Vol 9. Conference Proceedings (pp. 147-154). Association of Economists and Managers of the Balkans.


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