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Question
Which of the following is true of the "netting" process in the swap market?
A. It decreases or mitigates the credit risk on swaps.
B. Both parties make payments to each other as a consequence.
C. It implies that the default exposure of the in-the-money party is the total fixed or floating payment.
D. It does not happen across contracts.
E. Netting by novation increases the potential risk of loss.
Answer
This answer is hidden. It contains 1 characters.
Related questions
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