
As a result of labeling 50% haircuts "voluntary", Credit Default Swap contracts have proven to be useless when it comes to protecting against sovereign default. The serious implication is investors will need to find another way to hedge.
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More: http://globaleconomicanalysis.blogspot.com/2011/10/credit-default-swaps-useless-as-hedge.html
Hmmm... I wonder what might be a viable alternative...
