27.15 First-to-default swaps Similar to a reqular cds Several reference entities and reference bonds First entity to default triggers a payoff Settlement is same as ordinary CDs Options, Futures, and other Derivatives, 5th edition 2002 by John C. HullOptions, Futures, and Other Derivatives, 5th edition © 2002 by John C. Hull 27.15 First-to-default swaps • Similar to a regular CDS • Several reference entities and reference bonds • First entity to default triggers a payoff • Settlement is same as ordinary CDS