CDS does not have a market price and there is no guarantee that the counterparty will be able to fulfil its responsibilities.

Name: CDS does not have a market price and there is no guarantee that the counterparty will be able to fulfil its responsibilities.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Credit Default Swaps (CDS) are over-the-counter derivatives, meaning they do not have a standardized market price and are subject to counterparty risk, where the seller may default on their obligation.

CDS Does Not Have a Market Price and There Is