Mostly made famous thanks to the subprime mortgage crisis ten years ago, Credit Default Swaps reached a top outstanding amount of $62 trillion in 2007, before falling to $26 trillion three years later. It is known to be the one of the only financial products to transfer credit risk.
- Definitions and main usages (Definition, Non-naked CDS, Naked CDS, Sovereign CDS)
- Example (Setting, No credit default, A credit default happens)
- Pricing (Market-to-market value, Finding the "Risky PV01")
- CDS Spread Curve (Definition, Analysis of high yield borrowers by sector and region, Investment banks remain solid, should not spark the next economic crisis)