Systems and methods for hedging against risks associated with distressed instruments

摘要

Systems and methods for hedging against risks associated with distressed instruments are provided. These systems and methods are preferably directed towards providing a party wishing to protect itself from such risks with the opportunity to enter into a transaction with a provider of protection whereby such a party pays a risk protection premium to the provider of protection in exchange for the right to receive payment in the event that the value of the distressed instrument on or about maturity is below an agreed to strike price.