CDS for the masses are here!

[Adeptus]

Those Harvard economics graduates have done it again! They're about to open up a new wing at the Grand Casino and you're invited this time!! They figure you know, there's not enough risk out there yet, and need your help.

Yep, on March 8th you too will be able to take out a "CEBO" (CDS like insurance) on your neighbour's house burning down, or the Greece and Portugal defaults, Chinese Real Estate imploding, Saudi Arabia collapse, etc.

http://www.zerohedge.com/article/pre...tail-investors

We're all Doomed!!!

[jk]

Re: CDS for the masses are here!

this will be a marginable equity product trading as a credit derivative. We are delighted that finally one will be able to express a bearish opinion without fears of gross market manipulation and melt up, as the CEBOs will have little or no structural relationship to what happens with the broader stock market.

nonsense. the seller of the product will hedge its exposure by shorting the stock to buying a cds in the big, institutional market, whose seller will hedge, etc. the discussion at zerohedge seems to presume that this market will operate in a vacuum, with no connection to other markets.