Credit risk has always existed.Since the early 1990s,credit derivatives have become dominant in the capital markets.How do these instruments serve to reduce and/or transfer risk? Can you think of ways in which the existence of credit derivatives has made the financial markets more efficient?

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The Answer of Credit risk has always existed.Since the early 1990s,credit derivatives have become dominant in the capital markets.How do these instruments serve to reduce and/or transfer risk? Can you think of ways in which the existence of credit derivatives has made the financial markets more efficient?

Credit Risk Has Always Existed