SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Non-Tech : Derivatives: Darth Vader's Revenge
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Worswick who wrote (1530)3/12/2010 2:33:33 AM
From: Hawkmoon1 Recommendation  Read Replies (1) of 2794
 
No doubt about it, it's going to be difficult to unwind these CDS positions without creating unexpected consequences.

And my real beef with CDS is when they permit speculators with no insurable interest to participate. They just lack the same interests as the insurer and the insured.

Furthermore, to my understanding, CDS holders get paid off prior to debtors in any bankruptcy proceeding. Therefore, they essentially circumvent all attempts to restructure the debtor entity, resulting in the financial destruction of the borrower.

There is no choice, IMO.. CDS need to be regulated as insurance products, but that's going to require international cooperation.

And that will be like herding cats.

Hawk
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News