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Even if you can find someone to write you a weird, bespoke (and therefore expensive) derivative to hedge against the Trump DoT revoking thousands of CDLs, you'v
by ElevenLathe 10mo ago
Even if you can find someone to write you a weird, bespoke (and therefore expensive) derivative to hedge against the Trump DoT revoking thousands of CDLs, you've still only succeeded in moving all these calculations and risks to that counterparty. Somebody somewhere still has to have the headache of pricing this risk.
- lesuorac 10mo agoThe insurance company can also just go bankrupt if they priced it incorrectly and then your hedge is worthless.
- nerdsniper 10mo agoIdeally a reinsurer would be on the hook at that point.