credit default swaps

What are credit default swaps?

Prices for Credit Suisse default swaps rose to record new highs just before the bank was bought out. This was a clear indication that the market was very concerned that Credit Suisse were going to default on their debt obligations. In this article we discuss what are credit default swaps and how they are used by institutional firms in the market. Definition Credit default swaps are like an insurance product for buyers of fixed income products. It is a contract …

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