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What are the implications of credit default swaps (CDSs) for the broader financial system, and how do these derivative instruments both hedge against and contribute

  1. What are the implications of credit default swaps (CDSs) for the broader financial system, and how do these derivative instruments both hedge against and contribute to systemic risk?

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Credit default swaps CDSs are derivative instruments that allow investors to hedge against the risk of default on debt obligations such as bonds or lo... blur-text-image

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