About this document
Credit Default Swaps Overview by Trish Jumbo is a document available to read on EtoBox.
1. A credit default swap (CDS) controls credit risk by transferring it from the protection buyer to the protection seller. If a credit event like default or bankruptcy occurs, the protection seller pays the buyer the loss. An interest rate swap controls interest rate risk. 2. When assessing credit exposure, a portfolio manager is concerned with more than just default risk. They must also consider credit spread risk, the risk of spreads widening, and downgrade risk, the risk of individual issues being down
- Author
- Trish Jumbo
- Language
- EN