cds advantages over corp bonds

Discussion in 'SP5' started by dimitris13, Mar 1, 2020.

  1. dimitris13

    dimitris13 Member

    hi there

    why in sep 2014 q5 it mentions as advantage thst cds are complex and involve legal risks and can be expensive.
    i think this sounds more like a disadvange
    right?
     
  2. Colin McKee

    Colin McKee ActEd Tutor Staff Member

    Hi. I assume that you are looking at the solution in the revision booklets / ASET which separates the ideas into advantages and disadvantages. The examiners solutions simply lists them all together. I agree that this one looks like it should have been allocated into the disadvantages slot rather than the advantages.
     
  3. dimitris13

    dimitris13 Member

    hi, exactly this is what confuses me.

    thanks
     

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