Credit default swaps can be thought of as an insurance against the default of some underlying instrument1, or as a put option on the underlying instrument. In a typical credit default swap, as shown in figure, the par...
详细信息
Credit default swaps can be thought of as an insurance against the default of some underlying instrument1, or as a put option on the underlying instrument. In a typical credit default swap, as shown in figure, the party selling the credit risk (or the 'protection buyer') makes periodic payments to the 'protection seller' of a negotiated number of basis points , times the notional amount of the underlying bond or loan.
暂无评论