Credit Derivatives Can Be Used to Create Credit Risk Transfer

question 59

Multiple Choice

Credit derivatives can be used to create credit risk transfer products. The two most common products employing credit default swaps are ________.

• A) synthetic CDOs and credit-linked notes.
• B) synthetic CDOs and credit-linked CDOs.
• C) synthetic notes and credit-linked notes.
• D) nonsynthetic notes and credit-linked CDOs.