Index Credit Default Swaps Explained | FRM Part 2 | Credit Risk

In this video, we explore Index Credit Default Swaps (Index CDS) - contracts that allow investors to buy or sell credit protection on multiple names using a single transaction. The video first explores the mechanics of a simple or single name CDS and then provides extensions for an index CDS.

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[shivamkardile]

Thank you for easily explaining the said concept 😊

[sroy]

So please explain if there is a default would 1) we get cash payment minus our premium and 2) would the spread increase for the next payment ( as numerator and denominator both changes).