Umm, that's the entire reason the financial and insurance systems exist. Credits are assigned an interest rate depending on the probability of the receiving par

Umm, that's the entire reason the financial and insurance systems exist. Credits are assigned an interest rate depending on the probability of the receiving party's risk. Credit default swaps protect lenders from defaults. Elliot Capital's position is basically that of a broker buying junk bonds and then chasing after money through the courts when the company inevitably goes under. Sure, it could go your way, but they were well aware of the risks, and honestly the strategy of buying junk bonds on a defaulting country and expecting compensation through courts is not something that seems to be in "good faith".