Would you like to buy life or property insurance against a massive near-earth asteroid collision, like something that caused the non-avian-dinosaur-killing Cretaceous-Tertiary extinction of some 65.5M years ago? If so, I have some for sale. Well, I guess you might call it a swap, since I'd want payment in something yummy. But I'd make you whole again if/when such disaster struck. Yeah, uh-huh, fershur.
Seriously, I only ask because some people are buying Credit Default Swaps against US Treasury default, and, naturally, pricing them. While the two disasters are of course not exactly alike, neither are they completely nonanalogous (word?). Takes some cognitive dissonance to think about risk-reward and the likelihood of collection in event of event, in either case. But anyway, for what it's worth, the CDS spread is going up. Time to write some KDSs (kibble default swaps)?
6 hours ago
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