Dear All:
Could you please give the example and some explaination of credit default swap. I have read many times but still not clear about this concept.
thank you so much for your time
Dear All:
Could you please give the example and some explaination of credit default swap. I have read many times but still not clear about this concept.
thank you so much for your time
My understanding is that it hedges against default risk. Hence, if the credit quality of something deteriorates, the CDS gains; and if the credit quality improves, then the CDS loses.
http://www.thecfaexperience.com/search/label/CDS
check it over my blog. A video tutorial and related articles to CDS for application.