cr

Doubtfin · February 6th, 2006, 8:09 am

cheers

MikeCrowe · February 6th, 2006, 2:48 pm

Buy some bonds...Or if you want to avoid the interest rate risk, a purer form of credit exposure would be credit default swaps (CDS). The purest form is probably binary CDSs.Taking a long position is easy, you just buy whatever it is you want to be long! Its taking a short position that can sometimes be tricky.

xeoNeo · February 6th, 2006, 4:17 pm

for explelong credit = short a protection (CDS)

Gmike2000 · February 6th, 2006, 8:00 pm

Dont let them confuse you with the lingo:Long credit risk aka sell protection = you receive the spread, pay if there is credit event...equivalent to buying the bondShort credit risk aka buy protection = you pay the spread, receive if there is credit event...equivalent to shorting the bond