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Basic Question 0 of 14

An alternative to buying bonds for a financial institution to diversify its credit exposure would be to:

A. sell CDS protection.
B. buy CDS protection.
C. buy the reference entity.

User Contributed Comments 2

User Comment
schnurr ‘To diversify its credit exposure”. Wouldn’t buying cds protection diversify its exposure as well?
Logaritmus @up: Buying CDS is taking simillar credit risks.
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Martin Rockenfeldt

Martin Rockenfeldt

Learning Outcome Statements

analyze and interpret financial statement disclosures regarding property, plant, and equipment and intangible assets

CFA® 2025 Level I Curriculum, Volume 2, Module 7.