CDS Industry: Zero Sum Game or Ponzi Scheme? [View article]
Aren't premiums paid to buy protection like any insurance?The problem lies in the reserves for losses,which apparently are non-existent with many co.s writing swaps.When losses or marks come piling in,the problems are exposed and spread to other counterparties.
The author is assuming that the 1% comes out of the gross...It's premium expense,like your Blue Cross....I guess....
CDS Industry: Zero Sum Game or Ponzi Scheme? [View article]
The author is assuming that the 1% comes out of the gross...It's premium expense,like your Blue Cross....I guess....
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