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

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작성자 Wilmer Tilly 작성일24-04-25 16:32 조회44회 댓글0건

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Cargo-Lift.jpgCDS contracts do put a floor underneath the financial risk of owning a large portfolio of bonds. The CDS price reduces the return on the bonds. Many fund managers accept this cost as part of doing business. Because an unhedged bond default would be so devastating for their fund, it is acceptable to lose this money.

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