Do not actually own any of the underlying bonds.

实际上不拥有任何优先债券。

youdao

CDS contracts allow investors to take on credit risk without buying the underlying bonds.

CDS合同使投资人不用购买合同下的债券就能参与这类债券的风险。

youdao

The asymmetry encourages speculating on the short side, which in turn exerts a downward pressure on the underlying bonds.

这种不对称助长了对卖空的投机，反过来对基础债券施以下行压力。

youdao

Like swaps on interest rates and foreign currency, credit swaps outstanding dwarf the underlying bonds in circulation.

FORBES: Magazine Article

First, lower rates will prompt homeowners to refinance, increasing prepayment speeds and lowering the value of the underlying bonds.

FORBES: Surprise! Junk Debt Is Coming Back Into Style

The culprit is the constant fluctuation in real yields, which means the prices of underlying bonds are changing as well.

FORBES: Worried About Inflation? TIPS Aren't The Answer