Template:M premium summary eqderiv equity v credit derivatives showdown
A long essay taking in:
- The general “vibe” of CDS versus CFDs
- Overview and place in capital structure: the curious fact that credit derivatives, though “senior” are more concerned with bankruptcy
- As a means to synthetic exposure versus insurance versus loss
- As a buyside service and sellside hedging tool
- How they handle — or in the case of CDS, really don’t handle — subordinated instruments
- How thresholds and notionals relate to each