Buffett's Gamble: $40 Billion Bet on Volatility
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Buffet got close to 11.25% ($4.5B for $40B)premium for the insurance he sold. CDS for Berkshire comes out to be ($440K for $10M) 4.4%. Even if Buffest buys CDS for full amount for Berkshire default he makes 6.85 and gets off the hook ! :-)
Buffett's Gamble: $40 Billion Bet on Volatility [View article]