All other factors constant, for a given reference obligation and a given scheduled term, explain whether a credit default swap using full or old restructuring or modified restructuring would be more expensive.
Answer to relevant QuestionsWhat are convertible bonds and exchangeable bonds? What is meant by marking a position to market? What is a bond with an embedded option? (a) The portfolio manager of a tax-exempt fund is considering investing $500,000 in a debt instrument that pays an annual interest rate of 5.7% for four years. At the end of four years, the portfolio manager plans to ...The focus in an asset- backed securities CDS is on the cash-paying ability of the collateral and not on bankruptcy. Why?
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