Notwithstanding the hullaballoo about U.S. sovereign CDSs clearing 100bps, credit-default swaps...

|By:, SA News Editor

Notwithstanding the hullaballoo about U.S. sovereign CDSs clearing 100bps, credit-default swaps are not a default trade. "99% of people buying CDS do not believe that the entity upon which they are buying protection will actually default... People buy and sell stocks because they think the stock in question will increase or decrease in price. Same goes for CDS."