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International Swaps and Derivatives Association ISDA, 2012 holds that the total notional amount of outstanding CDS contracts rose from 2,2
trillion in December of 2002 to 58.2 trillion in December of 2007. The market size had more than doubled during each of these years but hit a
setback in 2008 as it suffered from worldwide financial instability.
2. Bloomberg LP
Bloomberg LP is a privately held financial software, data and media company headquartered in New York City. Bloomberg L.P. provides
financial software tools such as an analytics and equity trading platform, data services and news to financial companies and organizations through
the Bloomberg terminal. Bloomberg established in 1981. In 1986, 5,000 terminals had been
installed in subscriber offices. Within a few years, ancillary products including Bloomberg Tradebook a trading platform, the Bloomberg
Messaging Service, and the Bloomberg newswire were launched. Bloomberg launched its news services division in 1990. Bloomberg.com
was first established on September 29, 1993 as a financial portal with information on markets, currency conversion, news and events, and
Bloomberg Terminal subscriptions.
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B. Data Description
The data processing in this research is conducted by the statistical application. The application used for data processing in this research are
eviews 7
th
version and gretl.
1. Descriptive Statistic
The descriptive statistic is used to figure out the average value, minimum value, maximum value, and standard deviation of each
dependent and independent variable. To reveal the descriptive statistics on the data Credit Default Swap spreds CDS, GDP Growth GDP, Inflation
INF, Unemployment UNEMP, ImportGDP IMP, Current Account Balance CAB, can be seen in the following table:
Table 4.1 Descriptive Statistics
CDS GDP
INF UNEMP
IMP CAB
Mean 183.7091 2.470000 2.724286 7.221429
57.60000 2.018571
Median 123.1200 2.250000 2.500000 5.250000
40.00000 2.100000
Maximum 1081.870 10.40000 18.70000 26.40000
229.0000 15.70000
Minimum 25.49000 -6.400000 -4.500000 0.700000
12.00000 -11.00000
Std. Dev 177.8623 4.077807 3.027049 5.689499
49.05702 4.793694
Source: processed data Based on table 4.1, the descriptive statistics can be described as
follows:
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a. CDS Spreads
The average value of CDS spreads variable is 183.70 with the standard deviation of 177.86. The lowest value is 25.49 bps, while
the highest value is 1081.87 bps.
b. GDP Growth
The average value of GDP growth variable is 2.47, with the standard deviation of 4.077. The lowest value is -6.4 percent, while
the highest is 10.4 percent.
c. Inflation
The average value of inflation variable is 2.72 percent, with the standard deviation of 3.02. The lowest value is -4.5 percent,
while the highest value is 18.7 percent.
d. Unemployment
The average value of unemployment variable is 7.22 percent, with the standard deviation of 5.68. The lowest value is 0.70
percent, while the highest value is 26.40 percent.
e. ImportGDP
The average value of importGDP variable is 57.60 percent, with the standard deviation of 49.05. The lowest value is 12
percent, while the highest value is 229 percent.
