A survey by Fitch Ratings found that capital market participantsfelt that Credit

A survey by Fitch Ratings found that capital market participantsfelt that Credit Default Swaps a form of derivative contract thatpays off if the named underlier defaults on its debt obligationsare both more important as indicators of counterparty risk and amore important tool for managing counterparty risk than are othermeans such as stock prices or credit ratings. Please comment anddiscuss. For example what advantages or disadvantages ofmarket-based indicators for making investment (bonds loans stock)decisions? Additional Requirements