Which of the following is the primary sellers of credit risk protection?
A)Insurance companies.
B)Mutual funds.
C)Depository institutions.
D)Vulture funds.

Question

Quizplus · Accepted Answer

Insurance companies are primarily in the business of selling credit risk protection through products such as credit default swaps (CDS) and other insurance products that protect against losses due to credit events such as default, bankruptcy, or other credit-related events. Mutual funds and depository institutions may invest in credit risk protection products, but they are not primarily sellers of these products. Vulture funds may invest in distressed debt and other assets, but do not typically sell credit risk protection.

Which of the Following Is the Primary Sellers of Credit