USD-denominated Credit Default Swaps on US Treasuries (which were a thing in 2008) fall in this category. Any scenario bad enough for the swaps to be redeemable

USD-denominated Credit Default Swaps on US Treasuries (which were a thing in 2008) fall in this category. Any scenario bad enough for the swaps to be redeemable is one in which you are unlikely to be able to redeem them. http://www.bloombergview.com/articles/2013-09-26/why-would-anyone-buy-credit-default-swaps-on-the-u-s- http://www.bloombergview.com/articles/2013-09-26/why-would-a...