Which one of these firms would probably be most interested in a credit default swap?

Question

Quizplus · Accepted Answer

Financial institutions are most likely to be interested in credit default swaps as they are in the business of assessing and managing credit risk. Credit default swaps provide a way to transfer the risk of default of a particular bond or credit instrument to another party, thus making it an attractive option for financial institutions. A corporate farmer, pension fund, or portfolio manager may have less need for this type of financial instrument.

Which One of These Firms Would Probably Be Most Interested