During the most recent financial crisis,the FI segment that was most negatively affected by credit default swaps was
A)commercial banks.
B)insurance companies.
C)pension funds.
D)finance companies.

Question

Quizplus · Accepted Answer

Insurance companies were the most negatively affected by credit default swaps during the most recent financial crisis. This is because many insurance companies owned large amounts of mortgage-backed securities, which were the underlying assets of many credit default swaps. As the housing market collapsed and the value of these securities declined, insurance companies suffered significant losses from their exposure to credit default swaps.

During the Most Recent Financial Crisis,the FI Segment That Was