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).
Derivatives
Derivatives have increasingly become very important tools in finance over the last three decades. Many different types of derivatives are now traded actively on ...
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