By Whom and for What Reasons Are Credit Derivatives Used

question 76

Essay

By whom and for what reasons are credit derivatives used? Give an example.

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Definitions:

Parsimony

The principle or idea of simplicity, especially in scientific explanations, by preferring the least complicated explanation.

Scope

The extent of the area or subject matter that something deals with or to which it is relevant.

Range

The difference between the highest and lowest values in a data set, or the extent of variability.

Depth

The complexity or thoroughness involved in the examination or analysis of a subject, object, or concept.