Friday, 30 December 2011

News Pick - U.S. Company Credit-Default Swap Index Rises From Three-Week Low

Credit Default Swaps (CDS) are discussed in detail in Level II. They are important tool to hedge against the risk of default and act like an insurance. What exactly are they and how they are different from ordinary insurance has been briefly elaborated in the video posted earlier. The following article, link provided at the bottom, published in Business Week represents a real life example of Credit Default Swaps.

No comments:

Post a Comment