Which of the below statements is FALSE?
A) The reason why restructuring is so trouble-free is that a protection buyer benefits from the inclusion of restructuring as a credit event and feels that eliminating restructuring as a credit event will erode its credit protection.
B) If the reference obligation is a loan and the protection buyer is the lender, a benefit is that the protection buyer receives a payment from the protection seller.
C) If the reference obligation is a loan and the protection buyer is the lender, a benefit is that the accommodating restructuring fosters a relationship between the lender and its customer.
D) As the credit derivatives market developed, market participants learned a great deal about how to better define credit events.
Correct Answer:
Verified
Q8: Credit default swaps _.
A) are used to
Q9: The 1999 ISDA Credit Derivatives Definitions (referred
Q10: _ is defined as a variety of
Q11: Credit derivatives are used by institutional portfolio
Q12: _ means that if a credit event
Q14: The _ developed a standardized contract that
Q15: The reference entity _.
A) is the issuer
Q16: Credit derivatives can be used to create
Q17: In a _, the protection buyer pays
Q18: The most controversial credit event that may
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