Why is a Credit Default Swap where the buyer does NOT own the credit instrument not legally gambling?
Posted on : 18-06-2009 | By : p3rf3ctg3ntl3m4n | In : Investing
2
adarix asked:
If the buyer does not own the credit instrument, this seems no different than gambling. Is there a law that allows somebody to sell a CDS based on the failure of a credit instrument and not the failure of a football team?
Football is not chance. It has a lot of statistics and rules. But it is illegal to bet on it.
Content by. Fun Joomla
If the buyer does not own the credit instrument, this seems no different than gambling. Is there a law that allows somebody to sell a CDS based on the failure of a credit instrument and not the failure of a football team?
Football is not chance. It has a lot of statistics and rules. But it is illegal to bet on it.
Content by. Fun Joomla