You know how risk is "priced in" right? It's an art, not a science. They buy/sell financial instruments to hedge that risk, like collateralized bonds or credit

You know how risk is "priced in" right? It's an art, not a science. They buy/sell financial instruments to hedge that risk, like collateralized bonds or credit default swaps. Plenty of people lose big money when these bets don't work out.