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Basic Question 5 of 5
The strategy to buy a CDS of one maturity and sell a CDS of the same reference entity with a different maturity is known as:
B. curve trade.
C. basis trade.
A. long/short trade.
B. curve trade.
C. basis trade.
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I was very pleased with your notes and question bank. I especially like the mock exams because it helped to pull everything together.
Martin Rockenfeldt
Learning Outcome Statements
describe the use of CDS to manage credit exposures and to express views regarding changes in shape and/or level of the credit curve;
describe the use of CDS to take advantage of valuation disparities among separate markets, such as bonds, loans, equities, and equity-linked instruments.
CFA® 2025 Level II Curriculum, Volume 4, Module 30.