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Which of the following is not a property or benefit of credit derivatives? Group of answer choices In instruments subject to multiple sources of risk
Which of the following is not a property or benefit of credit derivatives?
Group of answer choices
In instruments subject to multiple sources of risk (such as junk bonds), they enable separating out credit risk from other risks.
They enable hedging out credit risk of securities that are illiquid and hard to sell.
They reduce the overall level of default risk in the economy.
They offer reference prices that make it easier to price other securities that have credit risk.
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