Usage of Credit Derivatives
Hi,
I am starting as an Analyst in Rx but throughout my MSc really enjoyed the classes on fixed income and credit derivatives (CDS and the like) and was wondering how much they are used by special sits/distressed funds (basically the exits I qualify for in a way). Particularly, do funds that you might find yourself advising in an AHG like a Verition, SVP or Oaktree use these products? I know anecdotally single name CDS are quite illiquid so wondering about the practicality of that. If not, what buyside roles have greater exposure to those types of products?
Macro RV guys trade CDS indices and options quite frequently
Any higher-octane public credit fund is going to use CDS/CDX for the quick risk toggle; its use as a shorting method also depends on rel val and what risk you're trying to express. No clue if private credit guys traffic in it
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