Interest rate swaps provide businesses with a valuable method to hedge against interest rate volatility, securing more stable financial planning. However, they require careful consideration of both potential benefits and inherent risks. Proper implementation, ongoing monitoring, and alignment with financial…
Credit Default Swaps (CDS) play a critical role in managing credit risks across financial sectors. By transferring default risks, CDS offer advantages like liquidity enhancement and price discovery while providing yield opportunities for investors. Learn the benefits, risks, and real-world…