Use the following two choices to identify whether each intermediary or entity is a net buyer or net seller of credit derivative securities.

Banks
A)Net buyer (typically)
B)Net seller (typically)

Question

Use the following two choices to identify whether each intermediary or entity is a net buyer or net seller of credit derivative securities.

Banks
A)Net buyer (typically)
B)Net seller (typically)

Quizplus · Accepted Answer

Banks are typically net buyers of credit derivative securities as they use these securities to manage their own credit risk exposures.

Use the Following Two Choices to Identify Whether Each Intermediary