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Thats pretty easy for an institution to do. You would simply find the most exposed developments with the highest credit ratings and buy CDS on their bonds. The
by sseveran 10y ago
Thats pretty easy for an institution to do. You would simply find the most exposed developments with the highest credit ratings and buy CDS on their bonds. The issue is that if this is not a crash (e.g. prices rapidly collapse triggering defaults) its very hard to monetize.