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Financial Markets & Products
Financial Markets & Products
Medium
Compared to an unfunded credit default swap (CDS), a credit-linked note (CLN) most likely has:
A
Lower counterparty risk because the investor pays cash upfront
B
Higher counterparty risk because the issuer holds no collateral
C
The same counterparty risk because both instruments reference the same credit
D
No counterparty risk because CLNs are exchange-traded instruments
Select an answer to continue
Tags
#cln
#cds
#counterparty-risk
#funded-vs-unfunded
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FRM Part I — Financial Markets & Products Practice Question | AcadiFi | AcadiFi