Which of the following statements regarding Credit Default Swaps (CDS) is least correct?

There is no secondary market for contracts, meaning that the counterparty is unable to sell the to another financial institution

The seller of a CDS contract expects that the is unlikely to default.

CDSs Contracts are traded overthe-counter and are not backed by an organized exchange

The buyer a provides periodic payments to the seller of the in return for an agreement that the seller will provide payment to the buyer in the event the securities specified in the swap agreement default.

A credit default swap (CDS) is a privately negotiated contract that protects investors against the risk of detuult on particular debt securities