During the financial crisis, the creditdefaultswap(CDS) market, a part of the OTC derivatives market, took center stage as difficulties in financial markets began to intensify and the counterparty risk involved in a largely bilaterally cleared market became apparent.
The most sweeping intervention of all came from Ireland's government, where concerns about spiking credit-default swap(CDS) spreads, falling share prices and jittery depositors led the finance minister to announce, on September 30th, a blanket guarantee on the deposits and almost all the debts of the country's six biggest banks until September 2010.