Template:M summ Credit Derivatives 2.1: Difference between revisions

The person against whose collapse you are hedging. This will generally be the [[issuer]] of a listed [[debt security]] — a {{isdaprov|Bond}} — or at a pinch, a relatively public syndicated {{isdaprov|Loan}}. A straightforward enough notion, complicated by the tendency for corporates to be taken over from time to time. What happens, for example, when [[Credit Suisse]], for some years now a basket case of a credit, with [[CDS spread]]s trading widely, becomes ''such'' a basket-case that, to stave off {{isdaprov|Bankruptcy}}, it is acquired lock, stock and barrel by UBS? Is UBS a {{isdaprov|Successor}}, and what should a credit derivative trader, who wisely bought protection on [[Lucky]] make of that its sudden return to comparative wellbeing in the arms of its rescuer?