Credit Default Swap Trigger Event - Quant Trader Interview Question
Difficulty: Medium
Category: Algorithms & Data Structures
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Topics: credit-default-swap, cds, credit-derivatives, credit-risk
Problem Description
You are a credit trader evaluating a Credit Default Swap (CDS) on a corporate bond. The protection buyer pays a periodic premium to the protection seller. Under what circumstances does the protection seller make a payout to the protection buyer?
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