Review: TRADING WITH CREDIT DEFAULT SWAPS
Rating: 5 out of 5
Date: 07 11, 2014
A Credit Default Swap is an agreement in which one person agrees to pay another in the event of a default.  A CDS is usually tied to bonds & loans.  They can be risky but if you know what you are doing you can make a significant profit.  In a CDS the Buyer makes regular payments to the Seller but will receive a lump sum from the Seller if the underlying stock defaults.  Credit Default Swaps are most commonly used for trading but can also be used for Risk Management and Investment purposes.  Bankruptcy, Failure to Pay and Restructuring are credit events or defaults that trigger a payout.  Adams does an excellent job writing in this book, he gives readers more than enough information to walk away actually feeling like they have learned something.  Thumbs up!