Before revision:  In this work, we show that the computational complexity of the clearing problem drastically increases when banks can also enter into credit default swaps (CDSs), i.e., financial derivative contracts that depend on the default of another bank . We first show that many important decision problems are NP-hard once CDSs are allowed.
After revision:  In this work, we show that the computational complexity of the clearing problem drastically increases when banks can also enter into credit default swaps (CDSs), i.e., financial derivative contracts that depend on the default of another bank , a solution may not even exist. In this work, we show that deciding if a solution exists is NP-complete if CDSs are allowed.