Credit linked products: high income levels, different types of exposure

Credit linked products have been around for many years and provide a way for investors to aim for a significantly higher yield than the risk-free rate. With the rise in popularity of Credit default swaps and various credit instruments in the early 2000s this sector became very popular but subsequently gained huge notoriety after the real estate bubble, the credit crunch of 2007 and the default of Lehman Brothers in 2008. Prior to 2007 many investors barely gave A-rated entities any considerat