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.
Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?


To: RockyBalboa who wrote (17025)1/30/2009 7:44:30 PM
From: axial  Respond to of 71475
 
The question is: what value is added by a CDS?

Is it really useful? We got along fine without CDSes, once.

Are the underlying transactions improved by adding the cost and complexity of a CDS?

We're told that the CDS is a form of ART (Alternative Risk Transfer). It appears to add costs and risks of its own without improving the underlying transaction.

The extra costs? Guess who gets the benefit.

Jim