

What is the difference between them?

  • 3
    $\begingroup$ From this definition: Recovery swaps are usually traded as zero-premium credit default swaps with the reference price set at the fixed recovery rate rather than 100. And here is a paper that discusses their pricing. $\endgroup$ – chrisaycock May 28 '13 at 11:29
  • $\begingroup$ Recovery swap is a hedge against the recovery rate risk, not against default risk. $\endgroup$ – quant_dev May 28 '13 at 17:03




Hope that makes sense


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