Ok thank you both.Now how is that an easier way to quote than the previous one?I mean, it just seems more complicated to me. Why this need to change to this new system?

Hello,Simple questionToday CDSs are quote with a fixed coupon and and an upfront fee.I would like to know how it was done before please?Was it a fixed spread determined at the beginning of the contract? Like 6% per year ?Thx a lot for your help

<t>QuoteOriginally posted by: bearishQuoteOriginally posted by: Jeffy14QuoteOriginally posted by: acastaldoStarting in 2009, the buyer of protection pays a fixed coupon plus a (variable) up front payment.Yes that's what I thought. By the way, do you know how to compute the upfront to be paid please?...

<t>QuoteOriginally posted by: acastaldoStarting in 2009, the buyer of protection pays a fixed coupon plus a (variable) up front payment.Yes that's what I thought. By the way, do you know how to compute the upfront to be paid please?Or how to convert from a standard fixed coupon payment to an Upfront...

<t>QuoteOriginally posted by: TadYes, generally this is how it works.In the simple case we have the following:The desk receives money from the investor and invests it (probably by transferring to treasury), from which it will earn a coupon of X. Then it sells short a CDS, for which it will receive a...

<t>Hello everyone,Does anyone know how a bank makes money when they issue CLNs to clients?I am not talking about the hedging of debt by the bank. I'm talking about the structured products that bank offer.Does the money come from the difference between the coupon paid to the investor and what the ban...