The mechanics of Credit Default Swaps (CDS)

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Learn the mechanics of Credit Default Swaps (CDS) with M&G’s Laura Frost. This video demonstrates how to gain or remove credit exposure in a portfolio through the sale or purchase of CDS single name or index contracts.
Discover the advantages of holding a CDS contract over physical bonds as well as the risk versus return implications when a bond default or credit event occurs.
Finally, the video explains the benefit of investing in CDX indices to express a particular view of the credit markets.
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Hi I have two questions

1. How liquid are they in markets? If OTC why are they valued at a specific rate and also published

2. If the nominal credit spread and implied CDS credit spread are different is that arbitrage? Can they be different ever?

Rey_B
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Hello, thank you for the explanation. Can you please tell me from where I can get CDS historical data ( 10 years) of a particular bank ?

renalnunes