You decide to go short a particular credit using the CDS market. Do you buy or sell protection?

Other things remaining equal, which of the following would you expect to increase the present value of the protection leg of a CDS?

In a simple case in which there is no wrong-way risk, the credit value adjustment (CVA) on a derivatives position with expected potential exposure €10 million to a counterparty with a credit spread of 200 basis points per year would be approximately:

In the market for inflation-linked bonds, buying the breakeven means:

If two bonds of the same credit quality and the same maturity have different coupon rates, then:

Which of the following best describes counterparty risk?

If the default swap basis for a particular credit is significantly negative and you believe that it should be zero, how should you trade?

Suppose that we go short €100 million nominal of the 0.5% Bund maturing 15 February 2025 (the 10-year German government benchmark bond) for settlement date 6 March 2015. The bond is trading at a clean price of 101.258 and has accrued interest of 0.02602740 per 100 nominal. We reverse in the bond using repo with a term of 14 days at a repo rate of 0.020%. What will be the repurchase price in the repo, assuming that no initial margin is applied to the collateral?

In a securitisation, the retained spread is:

A 5-year swap in which you pay 3-month USD LIBOR quarterly and receive 3-month Euribor quarterly is best described as a: