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Today, more than 90% of all credit derivatives are credit default swaps. a) Explain how credit default swaps (CDSs) work and illustrate your discussion with

Today, more than 90% of all credit derivatives are credit default swaps. a) Explain how credit default swaps (CDSs) work and illustrate your discussion with a simple diagram. b) Discuss the risks of CDSs and their role in the financial crisis

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