LOS c: Explain the use of credit derivatives by the various market participants.
Q1. Which of the following entities is the fastest growing segment of the credit derivatives market?
A) Commercial banks.
B) Hedge funds.
C) Investment Banks.
Q2. Which of the following is least likely a stated use of credit derivatives by commercial banks and corporations?
A) Income.
B) To satisfy regulatory standards.
C) Speculation.
Q3. Which of the following entities is the largest market participant in the credit derivatives market?
A) Hedge funds.
B) Investment Banks.
C) Commercial banks.
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