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Credit Default Swaps Can Be Used To Insure Bonds For Your Company

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작성자 Reina (141.♡.193.5) 작성일24-09-08 10:56 조회29회 댓글0건

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hq720.jpgCDS contracts do put a floor underneath the financial risk of owning a large portfolio of bonds. Of course, this price you pay for the CDS reduces your return from the bonds. Many fund managers accept this cost as part of doing business. Because a unhedged default in a bond is a disaster for their fund, it's acceptable to lose that money.

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