CDS material

i was just reviewing the schweser credit default swap material, and I realized when reading the opening blurb, this is prime material. It is new to level 2, and schweser claims the curriculum is sparse in properly preparing the candidate. I think this is stuff we get pretty easy, and it seems like they could sneak in half a vignette or more. What do you guys think.

you might be right… its very timely these days, the CDS market is MUCH bigger than it was a few years ago. better go back through it…

I think it may be one question at the most. I definately don’t see them putting a whole vig on CDS. But it is a very relevant topic that can fit in nicely to supplement a vig. It’s a very important concept out in the real world, so I definately see them putting something about it. Probably a question on what to do to hedge X, but most likely a qualitative question.

couple this curriculum and a sprinkle of real estate valuation and you have potentially 5% of the exam…