Crise is the second part of the trilogy “Euphorie, Crise, Recession”.
The euphoria of consumption for all and a world centered around individual happiness is followed by a period of crisis.
The two performers, freshly fired and close to suicide, will gradually make their domestic world derail and lead to visual apocalypse.
“A ‘credit default swap’ (CDS) is a credit derivative contract between two counterparties. The buyer makes periodic payments to the seller, and in return receives a payoff if an underlying financial instrument defaults or experiences a similar credit event.
A CDS is linked to a “reference entity” , usually a corporation . The reference entity is not a party to the contract.
If the reference entity defaults, the protection seller pays the buyer the par value of the bond.
An speculator may “buy protection” to hedge the risk of default on a bond, regardless of whether such investor or speculator holds an interest in or bears any risk of loss relating to such bond.
Imagine that an investor buys a CDS from AAA-Bank, where the reference entity is Risky Corp. The investor—the buyer of protection—will make regular payments to AAA-Bank—the seller of protection. If Risky Corp defaults on its debt, the investor receives a one-time payment from AAA-Bank, and the CDS contract is terminated.”