At first look, a credit default swap seems like a superbly wise financial tool. It is, mainly, insurance coverage on bonds. Imagine a large bank buys some bonds issued by General Electric. The bank expects to receive a gentle stream of payments from GE through the years. That’s how bonds work: The issuer pays the bondholder some cash every six months. But the bank figures there’s a chance that GE might go bankrupt. It’s a small likelihood, but not zero, and if it occurs, the bank would not get any more of these payments.
Joe Mok, common manager of Gmotorcars in Chicago, would not care about unicorns. His technique is to sell low cost. He recently bought 15 nearly equivalent 2015 Ford Fiestas for $6,900 and offered them for $7,600. The BoE mentioned in March that its banking supervisory arm was additionally reviewing credit score high quality in new lending … Read more