These shenanigans provide a real economic benefit to companies at the risk of long-term damage to an established market. High yield and distressed CDS is more

These shenanigans provide a real economic benefit to companies at the risk of long-term damage to an established market. High yield and distressed CDS is more or less a joke right now because of this stuff and the only thing restricting this from higher quality names is no one is big enough to play games at that scale. Without a credible market, the "financing opportunities" for companies will disappear. In an already inefficient market, it's also very hard to price the possibility/structure of these games as it's not like the company can publicly shop around deals for this. In the case of the HOV deal, issuing new bonds to game CDS deliverables was unprecedented and IMO just total nonsense.