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Basic Question 8 of 9

The buyer and the seller of a CDS exchange the ______ of a specific issuer.

A. credit risk
B. interest rate risk or market risk
C. liquidity risk

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Learning Outcome Statements

describe credit default swaps (CDS), single-name and index CDS, and the parameters that define a given CDS product;

CFA® 2025 Level II Curriculum, Volume 4, Module 30.