Index Credit Default Swaps Explained | FRM Part 2 | Credit Risk

In this video, we explore Index Credit Default Swaps (Index CDS) - contracts that allow investors to buy or sell credit protection on multiple names using a single transaction. The video first explores the mechanics of a simple or single name CDS and then provides extensions for an index CDS.
For more videos and preparation resources aimed at FRM Part 2 preparations, please see the course page:
www.finRGB.com/courses/frm-pa...

[@shivamkardile9457]

Thank you for easily explaining the said concept 😊

[@sroy3631]

So please explain if there is a default would 1) we get cash payment minus our premium and 2) would the spread increase for the next payment ( as numerator and denominator both changes).