- CFA Exams
- CFA Level I Exam
- Study Session 13. Fixed Income (2)
- Reading 36. Credit Default Swaps
- Subject 4. Applications of CDS
CFA Practice Question
The strategy to bet that the credit position of one reference entity will improve relative to that of another is called:
B. curve trade.
C. basis trade.
A. long/short trade.
B. curve trade.
C. basis trade.
Correct Answer: A
The strategy involves taking a long position in one CDS and a short position in another.
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