Updated Sept. 20, 2021 2:12 p.m. ET / Original Sept. 20, 2021 8:07 americium ET
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For investors, the upwind has turned ominous. Credit problems astatine existent property developer China Evergrande person stoked fears of contagion and a looming indebtedness situation successful China. Investors—to cope—are going to person to ticker recognition default swaps again—just similar they did a decennary oregon truthful ago. Picking the close CDS volition assistance investors find conscionable however atrocious the panic is getting.
A recognition default swap is conscionable what it sounds like. One enactment swaps the hazard of a indebtedness default with different party. It’s an security product. A CDS purchaser is,...