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Credit Default Swaps are Linked to Mortgage Delinquencies, Study Says

By Brian Honea

The researchers discovered that mortgage loans with a CDS were much more likely to default than those without a CDS, because banks often allowed the riskiest subprime loans to be packaged into securities with CDS coverage.

The post Credit Default Swaps are Linked to Mortgage Delinquencies, Study Says appeared first on DSNews.

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