Background: CDS, spreads and fiduciary/prohibited-transaction relevance How could you neutralize or hedge the single entity credit risk of an Annuity product and the answer is a Credit Default Swap (CDS). While a high-risk annuity like Athene has a double the default rate of a moderate-risk annuity like Prudential over the next 5 years, the risk … Continue reading Annuity Risk measured by Credit Default Swaps (CDS)