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Pricing Credit Derivtives

December 12 2001 at 12:03 AM
 

 

How would you determine a fair market value for a simple credit derivative? Is there more than one acceptable method? What is the best business practice, we currently trade swaps on a regular basis and have decided to move to credit default swaps. I was curious as to the "market perception" of a fair market value. I.e. A discounted series of cash flows netted of ...or... any thoughts or comments? Thanks.

 
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