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7. Explain all possible ways how CDS can be settled when credit event happens 8. Explain briefly how a first-to-default credit default works. As a

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7. Explain all possible ways how CDS can be settled when credit event happens 8. Explain briefly how a first-to-default credit default works. As a portiolio manager: would you use "basket" CDS (first-to-default) or a few single-name CDS's? Explain why Does its value increase or decrease as the default correlation between the companies in the basket increases

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