Credit Options

CDS Options are written on either a single name or a credit index.
There are two types:

  • Payers - have the right to buy protection

  • Receivers - have the right to sell protection


An option on a single name knock out if the underlying credit defaults
Options only provide protection against spread risk, not default risk.




© 2021 Better Solutions Limited. All Rights Reserved. © 2021 Better Solutions Limited TopPrevNext