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TBDS risk and default correlation

itsyourz

New Member
what is it becoming risky as default correlation is more negative?

if it is positive 1, then every tranches are regarded same?

i mean, when one of them is default, then all of them is default, due to the default correlation is 1

so in my opinion, this case would be riskier than negative correlation

please let me understand..

thanks!

suk
 
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