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Why CDS credit default swap (CDS) is important for credit managers?
To mitigate credit risk with credit default swap, it is important for credit managers to understand their volatility.
Credit Lenders can "swap" their credit risk with another investor for limited credit exposure to their portfolio.
But how does credit default swap impact the credit department?
Today, credit default swap is driving the credit derivatives market. Credit default swaps CDS' growth is vastly due to its flexibility as an active portfolio management tool and the ability to customize exposure to corporate credit.
Why use credit default swap?
When used correctly, credit default swaps can be a helpful way to manage the risk associated with underlying fixed-income securities. credit default swaps are largely speculative investments because each side is hedging against credit default.
However, there are still dangers associated with credit default swaps.
Watch this detailed course on credit default swap by industry expert Robert Shultz, on the right way to go about credit default swaps CDS, and how to evaluate credit default swap risks.
Mention
Key takeaways -
- Overview of Credit Derivatives
- Understanding Credit Default Swaps
- The Mechanics of A Credit Default Swap
- Evaluating Credit Default Swap Risks
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