question on credit default swaps [Newbie] - MarketTicker Forums


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User Info	question on credit default swaps in forum [Newbie]
Mikeri Posts: 270 Incept: 2007-10-04 Natchez, MS	Can someone plez tell me where I can find which currency is called for to settle verious CDS's. Tkx. 2011-02-10 08:46:43 Permalink
Patmcgroin Posts: 8222 Incept: 2007-09-12 Chicago	It's not the currency, it's the note. You can purchase the note in whatever currency you like if you need to deliver it to satisfy CDS. ---------- "I know a few arcane, obscure financial acronyms that the general public doesn't know and that's about it." 2011-02-10 10:59:38 Permalink
Deergoose Posts: 57 Incept: 2010-07-01 Cincinnati Banned	I have a question: I was reading a report posted on zerohedge that was study done on CDS spreads for various countries. The spreads are shown in basis points. The riskier the country, the higher the basis points. ~~ So this is my understanding. If I have a bond that I want default insurance on, I am the buyer of a Credit Default Swap. The provider of the CDS is the seller. What is represented in the basis point spread? If I have $1000 in Greek bonds, and the CDS spread is 1000bps, what are my obligations to buy this insurance? Am I paying 10% of the bond's face value to have a CDS on greek bonds? I'm confused. Is there any link someone can point me to because I'm not sure what to make of it all. 2011-02-16 00:35:18 Permalink