Business Analysis in the world of banking and trading

Credit Default Swap

April 30, 2007 · Leave a Comment

CREDIT DEFAULT SWAP – U.S. Equity example

CDS dealers have repeatedly resorted to a resolution procedure involving a shift to cash rather than physical settlement following a credit event.

Such a procedure has been applied to the resolution of CDS contracts on Delta Airlines, Northwest Airlines and, most prominently,
Delphi.

-Philip Green, c. 2007

Categories: Derivatives · Wall Street · banking · finance

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