High-yield CDS does not cover all risks – Fitch

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A new report from Fitch Ratings seeks to remind the buyers of CDS protection on high-yield names that they are not covered in the event of a bond or loan restructuring.

Fitch analysts say that it is important for investors and other market participants to understand that the structural differences between the high-yield CDS and the high-yield cash market are more acute than in the investment-grade universe.

Whereas the high-grade CDS world has been negotiating itself into knots for the past tw

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