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Sovereign CDS
Posted: November 11th, 2009, 1:00 pm
by street
Can someone give some detail on the structure of Sovereign CDS.In particular why would anyone buy CDS on US Debt?
Sovereign CDS
Posted: November 13th, 2009, 12:44 pm
by daveangel
it is conceivable that the US government could default on its debt even in local currency. also, it may defualt on any foreign currency obligations. however, i think this is a case of where the insurance policy may not be worth anything as you may not be able to collect when we are all living in caves.
Sovereign CDS
Posted: November 13th, 2009, 2:50 pm
by street
Thanks for confirming my intuition.