You know I am reminded of a line of Groucho Marx. This was a famous person in Hollywood in the early 1930s. He made the statement, which said that I don’t want to belong to a club, which will accept a goon like me.Continue reading
Credit derivatives are a specific class of financial instruments whose value is derived from an underlying market instrument driven primarily by the credit risk. Credit derivatives are similar to other derivatives that transfer risk between parties; the difference is that credit derivatives transfer credit risk rather than price or interest rate risk.