PPT Slide
Market efficiencies provided by
Absence of the reference asset in the negotiation process - flexibility
in setting terms that meet the needs of both counterparties.
Short sales of credit instruments can be executed with reasonable
liquidity - hedging existing exposure or simply profiting from a
negative credit view. Short sales would open up a wealth of
Offer considerable flexibilities in terms of leverage. For example,
a hedge fund can both synthetically finance the position of a
portfolio of bank loans but avoid the administrative costs of direct