Question: Answer the below questions. (a) Explain how a single-name CDS can be used by a portfolio manager who wants to short a reference entity. (b)

Answer the below questions.
(a) Explain how a single-name CDS can be used by a manager who wants to short a reference entity.
(b) Explain how a single-name CDS can be used by a manager who is having difficulty acquiring the bonds of a particular in the cash market.

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a If a portfolio manager expects that an issuer will have difficulties in the future and wants to take a position based on that expectation it will sh... View full answer

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