Are Credit-Linked Notes Dangerous for Public Funds?
Posted on 02/24/2013
Public investors that have restrictions participating directly into credit swaps or desire access to a diverse pool of credit investments are choosing to invest some capital in credit-linked notes (CLN). Public pensions such as CalPERS have classified credit-linked notes as an opportunistic asset class given the historical level of risk associated with structured investments. In […]
- Alternatives
- Asset Allocation
- CLN
- credit derivative
- Credit-Linked Notes
- financial engineering
- loss severity
- Reference Entity
