Search results

Hello SHaktiRathore! Yes you are correct this is exactly that. Thanks a lot for your help! I'm still not sure about how the bank makes money though. I would like confirmation :) Thx again! You were very helpful

Hello ShaktiRathore, Thx for your help again! Look I found a new element that troubles me. In this book he says the money receive from the CLN investor is invested in High quality collateral...

Hello, Thank you very much for your answer! It clarified things a lot! Now I would really like to confirm how the bank gets its profit. I thought about what you said too and yes it's a possibility. Another could be on the price paid for the underlying bond and the nominal of the CLN? Could...

Hello David, I have a question regarding the issuer of the CLN. Let's say it's a bank that's selling a product (the CLN). The bank issues Notes to the CLN investor (the protection seller). The bank also receives the cash from the investor but also sells a CDS to finance the payment of the CLN...