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is speculating on the credit worthiness, risk of default including financial worth of an entity. It can be classified in a few groups: trading in Sovereign, Corporations, or credit index.

It can involve trading in the fixed income and CB market in a broad range of products, mostly CDS or credit default swaps. A common reason for this type of trading is being able to hedge company risk on the back of another investment.

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Q: What is meant by credit trading?
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