Recent comments in /f/wallstreetbets

SatisfactoryFinance t1_jdjxax5 wrote

Well someone has to be on the short end of the CDS. Though they could insure/hedge those losses but it’s hard and $$$ I assume now.

In 2008 all the banks that had the short end of the CDS went and got it ā€œinsuredā€ by the insurance companies. The amount of notional insured back then screwed the insurance companies, zapped liquidity, and the markets froze up.

So I think people are just afraid of that happening again, I don’t know enough about todays markets to know how true or false that is.

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