________ are, in essence, an insurance contract against the default of one or more borrowers.

A) Credit default swaps
B) CMOs
C) ETFs
D) Collateralized debt obligations
E) All of the options

Credit Default Swaps

Financial derivatives that allow an investor to swap or offset their credit risk with that of another investor.

Insurance Contract

A legal agreement between an insurance company and the policyholder, which specifies the terms for the payment of insurance benefits.

Default

Failure to fulfill a financial obligation, especially failing to make payments on a loan, bond, or other debt instrument.