Home / Offering Memorandum / RISK FACTORS AND INVESTMENT CONSIDERATIONS / Credit Default Swaps

18.75. Credit Default Swaps

An Investment Compartment may purchase and sell credit derivatives contracts — primarily credit default swaps — both for hedging and other purposes. Credit default swaps generally trade on the basis of theoretical pricing and valuation models, which may not accurately value such swap positions when established or when subsequently traded or unwound under actual market conditions.