What are credit default swaps

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What are credit default swaps? How do they differ from traditional bond insurance issued by American International Group (AIG)?

Describe each step of securitization discussed in the class. Which step was played by AIG in this process?

How did AIG use credit default swaps to credit-enhance mortgage-backed securities? Discuss AIG's role in the success of securitization.

Reference no: EM133003761

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