Stulz, René M. (contributor) - 2004 - [Elektronische Ressource]
risks. For example,
Enron had complicated derivatives with “credit rating triggers,” which require payments
to be made (or … the derivatives positions to be closed) if the firm’s credit rating falls below
a trigger level. Once Enron’s credit …, swaps
have no value at initiation, so that a firm with a good credit rating can build a portfolio of
swaps without writing …