An advantage of a CDS is that it allows market participants to take a position on credit risk (i.e. by buying or selling them).

Name: An advantage of a CDS is that it allows market participants to take a position on credit risk (i.e. by buying or selling them).
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Credit Default Swaps (CDS) are financial derivatives that allow investors to hedge or speculate on the credit risk of a borrower by buying or selling protection against default.

An Advantage of a CDS Is That It Allows Market