Difference between revisions of "CDS options"

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Credit default swap options (or "credit swaptions") are options to buy or sell credit default swaps on single name stocks or traded indices.
 
Credit default swap options (or "credit swaptions") are options to buy or sell credit default swaps on single name stocks or traded indices.
  
CDS index options are traded off the two main families of CDS indexes -- the U.S.-based CDX and the European-based iTraxx.  They work like U.S. equity index options. They provide users with the right to buy or sell protection at a specified time and spread level off the CDS indices.http://www.marketwatch.com/story/options-in-an-increasingly-volatile-market-2010-06-09?dist=countdown
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CDS index options are traded off the two main families of CDS indexes -- the U.S.-based CDX and the European-based iTraxx.  They work like U.S. equity index options. They provide users with the right to buy or sell protection at a specified time and spread level off the CDS indices.<ref>{{cite web|url=http://www.marketwatch.com/story/options-in-an-increasingly-volatile-market-2010-06-09?dist=countdown|name=Despite reform, CDS options go from toxic to tasty|org=Marketwatch|date=June 10, 2010}}</ref>
  
  

Revision as of 15:30, 10 June 2010


Credit default swap options (or "credit swaptions") are options to buy or sell credit default swaps on single name stocks or traded indices.

CDS index options are traded off the two main families of CDS indexes -- the U.S.-based CDX and the European-based iTraxx. They work like U.S. equity index options. They provide users with the right to buy or sell protection at a specified time and spread level off the CDS indices.[1]


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References

  1. Despite reform, CDS options go from toxic to tasty. Marketwatch.