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How do financial institutions employ complex derivatives such as interest rate swaps and credit default swaps to manage their exposure to interest rate and credit

  1. How do financial institutions employ complex derivatives such as interest rate swaps and credit default swaps to manage their exposure to interest rate and credit risk, and what are the associated implications for systemic stability ?

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To control interest rate and credit risk financial institutions use sophisticated derivatives like interest rate swaps and credit default swaps CDS Through the use of these derivatives institutions ca... blur-text-image

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