CDS

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First to Default Credit Linked Notes

15 years ago
/ Structured Products
/ By Martin Lee

Last week, I wrote an introduction to credit default swaps. An extension to a single CDS is a credit linked note (CLN) that has a basket of entities as the reference entities. In this case, a default will occur when the first entity in the basket defaults. The noteholder becomes the insurer while the CLN […]

An Introduction to Credit Default Swaps

15 years ago
/ Bonds Structured Products
/ By Martin Lee
/ 5 COMMENTS

An understanding of credit default swaps is essential in order for you to understand the workings of credit-linked notes or structured products. In this post, I will give a brief introduction to credit default swaps. But first, we need to know what a bond is. A bond is simply a debt obligation of a company. […]