Bond Types Videos

The speaker discusses valuing a credit default swap.  The speaker discusses how he is solving for CDS spreads and that the probabiity adjusted present value of the expected payments needs to equal the probability adjusted present value of the expected payout from the protection seller.

The speaker presents the concept of a credit default swap basket.  It is very similar to a CDS but the reference asset consists of a basket of debt obligations.

Steve Kroft from 60 minutes takes a deep dive into the credit default swaps market and discusses how this financial instrument has added fuel to the financial fire on Wall Street.