Credit default swaps (CDS) - What are they and should investors be worried about them?

[addycabTV]

What about 'naked' credit default swaps?

Should you be be allowed to insure something you don't own?

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AIG couldn't pay it's obligations to the investors that were actually trying to insure bonds because AIG had made huge side bets with 3rd parties that were simply betting on failure.

[Theodosios2010]

Great videos, I learned a lot. Thanks for the great info

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[MoneyWeekVideos]

For anyone looking for related topics try my videos on "what is a swap" "what are futures" and "what are options and covered warrants". Tim.

[nsambel]

This is a great video. Thank you very much, Tim.

[spaceboyted123]

Hi Tim, if I were an investment bank holding Greek bonds in yr 1 with a maturity date in 4 years time and the CDS was 50 basis points in yr1, would I be expected to pay more basis points in the following 3 years when Greek bonds become more risky to hold? In other words, if I am committed to a bond over 4 years and I insure it in the 1st year when everything is ok, it seems a bit harsh for the rates to increase for the remaining 3 years until maturity. Can the CDS rate remain fixed over 4 yrs?

[zeeshanalikhananwar]

you are a top man, really appreciate your work.

Please keep going on.

[sk8ormylife]

Nice.



[MrPhilipc13]

Do a video on the ringfencing of british banks separating the investment ad retail sides. Also talk about the problems and criticisms that have or could arise.

[MoneyWeekVideos]

@MrPhilipc13 I have done a video on just that very topic! See "can ring fencing save the banks". Tim.