Role of fixed coupon in credit default swaps

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Role of a fixed coupon in Credit Default Swaps? Can someone explain to me the functions of a fixed coupon in a CDS? For example, what happens if the quoted spread is greater than the coupon? What happens when it's less?

Reference no: EM13962467

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Role of fixed coupon in credit default swaps : Role of a fixed coupon in Credit Default Swaps? Can someone explain to me the functions of a fixed coupon in a CDS? For example, what happens if the quoted spread is greater than the coupon? What happens when it's less?

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