Derivatives
PoC
October 11, 2020
Derivatives
Swap Duration
October 11, 2020

Selling a credit default swap (CDS); a short position in a credit default swap (CDS). It is equivalent to longing credit risk, i.e., having a long exposure on the credit market (bond/ loan market). This is the position taken by a protection seller whereby the seller longs the credit and receives the periodical premiums (CDS price).

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