In The Big Short: Inside the Doomsday Machine Michael Lewis writes a credit default swap was confusing
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In “The Big Short: Inside the Doomsday Machine” Michael Lewis writes “a credit default swap was confusing mainly because it wasn’t really a swap at all. It was an insurance policy, typically on a corporate bond, with semiannual premium payments and a fixed term.” In what way is a CDS a swap? In what way is a CDS different from an interest rate swap?
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Related Book For
Multinational Financial Management
ISBN: 9781119559900
11th Edition
Authors: Alan C Shapiro, Paul Hanouna
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