Question

d. In labeling his article "Forget CDS: equity-default swaps return", what is the implicit commentary the author of this article making while making an analogy between CDS and EDS ?

Answer 1

The label of the article clearly underlines the analogy between CDS and EDS. The author, through the article, is saying that EDS (equity default swaps) are making a quite return and has the potential to outrun CDS as the more lucrative derivative instrument. The current environment of global economic slowdown is making EDS as an attractive option as investors are hungry for high yields in this low yielding economic and financial environment. EDS offers a higher amount of yield compared to CDS and this is a big advantage for EDS.