10 Comments for Credit Default Swap (cds)

• 1. SeanUK05  |  October 13th, 2009 at 4:55 am

  Do you have any other materials showing how to price CDS or compute swap rate on the basis of Excel? or any materials that you would recommend? Any tips will be much appreicated!!

• 2. LoneOarman  |  October 13th, 2009 at 5:28 am

  It was a loop hole in the gambling laws, which excluded investors. The investor did not own the bond, but was allowed to buy insurance anyways. It’s like buying insurance on your neighbors house.

• 3. Brainman94  |  October 13th, 2009 at 5:41 am

  no – betting is for losers – derivatives are for losers. There’s no difference.

• 4. flangelet  |  October 13th, 2009 at 5:44 am

  So why aren’t you buying any?

• 5. jaymantis  |  October 13th, 2009 at 6:27 am

  that’s the OrmEmber example, a few comments down

• 6. jaymantis  |  October 13th, 2009 at 6:35 am

  So in this example, if I did not own the $100 bond, would i only receive $70 because I wouldn’t be entitled to the $30 recovery?orwould i be required to buy the bond to deliver it to the protection seller?

• 7. bionicturtledotcom  |  October 13th, 2009 at 7:30 am

  right, if the contract calls for cash settlement, and you didn’t own bond, you’d only receive $70. Re: would you be required to buy the bond. The cash versus physical has typically been set initially (at the time of contract). Sometimes, a physical can go cash, but ultimately it’s contractual.

• 8. jaymantis  |  October 13th, 2009 at 8:10 am

  thank you so much. i really appreciate the response. you are doing great work. please keep it up!

• 9. stankwho  |  October 13th, 2009 at 9:00 am

  Basically no different then sports betting. The whole reason the financial system is in a shithole.

• 10. MyFreeCredit  |  October 13th, 2009 at 9:16 am

  Nice vid. Thanks for sharing.

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