CDS Panel: Credit Suisse AT1 Wipeout Won't Prompt Payout

CDS Panel: Credit Suisse AT1 Wipeout Won't Prompt Payout

Assessment

Interactive Video

Business

University

Hard

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The video discusses a recent ruling on 81 bonds, which surprised many by favoring one side significantly. The ruling highlighted the tension between hedge funds and banks, with implications for risk management in the bond market. The decision came sooner than expected and has historical roots in the post-2008 financial crisis bond market development. It serves as a lesson in market dynamics and risk assessment.

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5 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What was the main reason for the tension between the two camps regarding the 81 bonds?

Different bond issuers

Varied interest rates

Disagreement on bond maturity

Different expectations on the payout

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Why did the ruling on 81 bonds come as a surprise to some parties?

It was delayed longer than expected

It favored the banks significantly

It involved a new type of bond

It was decided faster than anticipated

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What historical event increased the popularity of 81 bonds?

The 1997 Asian financial crisis

The dot-com bubble

The 2008 financial crisis

The 2020 pandemic

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is one major implication of the ruling on 81 bonds for the bond market?

Increased interest rates

Changes in risk management strategies

Introduction of new bond types

Reduction in bond trading

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What lesson can be learned from the ruling on 81 bonds?

The importance of diversifying investments

The need for better risk management

The benefits of short-term trading

The advantages of investing in stocks