Capital market participants felt that credit default swaps

Assignment Help Finance Basics
Reference no: EM13305267

A survey by Fitch Ratings found that capital market participants felt that Credit Default Swaps, a form of derivative contract that pays off if the named underlier defaults on its debt obligations, are both more important as indicators of counterparty risk and a more important tool for managing counterparty risk than are other means, such as stock prices or credit ratings. Please comment and discuss. For example, what advantages or disadvantages of market-based indicators for making investment (bonds, loans, stock) decisions?

Reference no: EM13305267

Questions Cloud

Estimate how far the contaminant would travel in 5 years : A contaminant in water is traveling through a saturated clay layer under a hydraulic gradient of 0.15. The clay has a hydraulic conductivity of 2 x 10^(-7) cm/s, a moisture content of 19%, and a Gs of 2.65.
What is the equilibrium constant of the spring : a person of mass Mp is standing in an elevator of Me suspended from the top of a building by a spring with spring constant k. what is the equilibrium constant of the spring
Determine temperature of the combined wastewater and stream : A municipal WWTP discharges 22.5 MGD of secondary effluent containing 45 mg/L of ultimate BOD at 26.7 oC with 1.3 mg/L of dissolved oxygen. The stream flow is 237 ft3/s at a velocity of 2.1 ft/s and an average depth of 7 ft.
Calculate the amount for her and explain the account : Annie's mortgage statement shows a total payment of $699.12 with $604.60 paid toward principal and interest and $94.52 paid for taxes and insurance. Taxes and insurance for 3 months were collected at closing. Now after 6 months of payments, she..
Capital market participants felt that credit default swaps : A survey by Fitch Ratings found that capital market participants felt that Credit Default Swaps, a form of derivative contract that pays off if the named underlier defaults on its debt obligations, are both more important as indicators of coun..
Estimate the maximum number of cars per hour as a function : Estimate the maximum number of cars per hour that can travel down two lanes of a highway as a function of speed (ie at 50, 60 , and 70 mph) .for safety purposes the cars must be spaced one car length apart for each 10 mph they are traveling.
Obtain the density of the solvent : A cylindrical storage tank has a radius of 1.20 m. When filled to a height of 3.66 m, What is the density of the solvent
Duarte is a manufacturer of high-end springs used by major : You're the sole owner of Duarte Spring Company; you paid $200K for the business when you acquired the firm five years ago. Duarte is a manufacturer of high-end springs used by major aerospace and aircraft manufacturing companies.
Determine the maximum value of the tension force in string : a mass m is attached to a string of length l and released when the string is horizontal, causing the mass to fall in a circular path. determine the maximum value of the tension force in the string

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd