CFA Practice Question

There are 252 practice questions for this study session.

CFA Practice Question

During the life of a CDS the credit quality of the reference entity improves. Which party of the CDS will benefit from this?
A. bondholder.
B. protection buyer.
C. protection seller.
Explanation: The protection seller continues to receive the same payment series but now bears less risk. The bondholder will benefit too but is not a party of the CDS.

User Contributed Comments 0

You need to log in first to add your comment.