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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

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To: YanivBA who wrote (69193)8/31/2006 3:14:21 PM
From: Ramsey Su  Read Replies (1) of 110194
 
I am probably getting it wrong but here is my question regarding insider trading.

What if I bought a bunch of loans and it is experiencing a certain level of defaults. Now I am thinking about buying a similar package so I already know the likelihood of loss. Would it not be a mathematic calculation to buy CDS "insurance" if the rates are cheaper than my expected losses?

Is that "insider" information?

After LTCM, I am just so skeptical of these fancy instruments invented by geniuses.
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