GFI Group (GFIG)

Discussion in 'Stocks' started by ASusilovic, Dec 9, 2007.

  1. GFI Group (GFIG) specializes in what are known as credit default swaps. For those who are unfamiliar with the term, a credit default swap is a derivative contract where one party sells another an insurance policy against a 'credit event' (debt default, missed coupon payment, etc.) occurring. As the chart below illustrates, GFIG has directly benefited from rising levels of risk in the credit markets.


    Maybe a good investment idea for those on ET who expect further credit crunch and rising corporate default rates...