Fishknife: Keep it stupidly simple and CDS will grow

 If defaults were triggered only by a failure to pay, CDS would be simpler to use and more liquid

Comment by: Anonymous. Posted 9 years ago [2014-09-09 18:49:03]

Apart from the shenanigan's orchestrated by those smarter than the market (namely European & US regulators of course), a default is a default is a default. Whether its been a bankruptcy or failure to pay, the event and corresponding impact tends to be clear, even if we give lawyers something to fiddle about. Having traded credit derivatives since 1999, I see the product as invaluable historically, and moving forward when considering the impact of the Volker rule has, is and will have upon the market. If a definition is too complex to understand, one probably shouldn't do anything other than shoot marbles or work for the Obama administration.