Purpose - Credit derivatives continue to grow in popularity as well as complexity. While single-name credit default swaps are still the most popular instruments, second-generation products have become more commonplace. Second generation products are those whose payoffs are contingent on the...

Purpose – Credit derivatives continue to grow in popularity as well as complexity. While single‐name credit default swaps are still the most popular instruments, second‐generation products have become more commonplace. Second generation products are those whose payoffs are contingent on...