CDS were used by financial institutions to protect portfolios of bonds from erosion in value.
Ethics of care, pluralism and particularism are rebellious departures from all of them, and virtue ethics, the ancient grandparent of all ethical thin
July 15, 2020Discuss why animal eyes glow green when illuminated at night
July 15, 2020CDS were used by financial institutions to protect portfolios of bonds from erosion in value.
CDS were used by financial institutions to protect portfolios of bonds from erosion in value. A major writer of CDS was AIG Financial Products. When AIG Financial Products became less and less solvent the value of the CDS fell and this increased the risk of default by financial institutions that relied on the insurance offered by CDS contracts as a protection against credit events (defaults on the underlying assets).
Answer True
