Template:M premium summary eqderiv equity v credit derivatives showdown

From The Jolly Contrarian
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A long essay taking in:

  • The general “vibe” of CDS versus CFDs
  • Their respective places in an Issuer’s 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
  • As a special treat, an AI-generated essay about what it takes to learn the ways of the credit ninja.