What is a credit default swap?

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An Introduction to Derivative Securities Financial Markets and Risk Management

ISBN: 978-0393913071

1st edition

Authors: Robert A. Jarrow, Arkadev Chatterjee

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Question Posted: Dec 02, 2015 04:03 AM

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When is a credit default swap useful? Why?
Is a total return swap on a bond the same as a credit default swap (see Section 23-1)? Why or why not?
An investor believes that a bond may temporarily increase in credit risk. Which of the following would be the liquid method of exploiting this? a. The purchase of a credit default swap. b. The sale...
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What is a credit default swap?

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Credit default swaps CDS are term insurance contracts written on traded bonds with ...View the full answer

An Introduction to Derivative Securities Financial Markets and Risk Management

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