Morgan Stanley Trading Operations Analyst Interview Questions and Answers

A credit default swap is a financial contract that allows an investor to transfer the credit risk of a borrower to another party.

• It is a type of derivative instrument

• It involves two parties - the buyer and the seller

• The buyer pays a premium to the seller in exchange for protection against default by a third party

• If the third party defaults, the seller pays the buyer the face value of the contract

• It is often used as a h

Mortgage backed securities are financial instruments that are backed by a pool of mortgages.

• Mortgage backed securities are created when a financial institution pools together a group of mortgages and sells them to investors as a single security.

• The cash flows from the underlying mortgages are used to pay interest and principal to the investors in the mortgage backed security.

• Mortgage backed securities can be issued by ...read more

A credit default swap is a financial contract that allows investors to transfer the risk of default on a loan or bond to another party.

• It is a type of derivative instrument

• The buyer of the swap pays a premium to the seller in exchange for protection against default on a specific loan or bond

• If a default occurs, the seller of the swap pays the buyer the face value of the loan or bond

• Credit default swaps played a role in

Mortgage backed securities are financial instruments that are backed by a pool of mortgages.

• Mortgage backed securities are created when a financial institution pools together a group of mortgages and sells them to investors as a single security.

• Investors receive payments from the mortgages in the pool, which are passed through to the investors in the form of interest and principal payments.

• Mortgage backed securities ca...read more