Fully explain credit default swaps and discuss their relationship to financial events in 2007 and 2008.

1. Fully explain credit default swaps and discuss their relationship to financial events in 2007 and 2008.
2. In your own words, explain asset swaps and asset swap spreads..
3. Identify risks included by regulators in their definition of operational risks. Identify also risks that are not included.
 4. Which distributions are commonly used for loss frequency and loss severity?
5. Explain how liquidity black holes occur. How can regulation lead to liquidity black holes?
6. Briefly summarize the text information on risk limits and liquidity risk.
7. Choose three of the risk management mistakes to avoid and discuss each, providing real-world examples.