ubuy2w

A View on Sovereign Risk

Think about it why would one purchase a cds on a US treasury do you think if the US treasury defaulted there would be ANY counter party left to make good on the trade. It makes much more sense to buy a south sea island if you want to hedge against the end of the world as you know it.

On May 18 06:52 PM wheelbarrelsofcash wrote:

> So how does the US only have 1.9 Trillion of net CDS exposure? Seems
> very low when one considers the expansion of the Treasuries balance
> sheet by 1 trillion USD and the reported 9 trillion of off balance
> sheet transactions of the Federal Reserve.