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    • Credit Default Swaps and Counterparty Risk: Beware What Lies Beneath [view article]
      One interesting aspect of this is that, in a normal insurance arrangement, the insurer does not have a right to assign its obligations to unrelated parties. In fact, the insured may pay a premium for the right to have insurance from an entity you trust or whose ratings meet your criteria. The policy is an asset and the insured may sell it. The CDS market seems to have turned the legal concept upside down in allowing the transfers of the obligations to unknown parties with unverifiable financial capacity. May 15 10:30 AM
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