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Goldman Traders are Caught Up in a Bizzare, Tense Hedge Fund Battle – Bloomberg 

Full Article: Bloomberg

The flap was ignited by Blackstone Group LP’s credit unit, GSO Capital Partners, which is trying to convince the builder to accept a bond refinancing package. GSO’s plan would trigger payments on default insurance that it bought in the credit derivatives market.

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  • Wolfman
    WolfmanDecember 8, 2017""On a technical level this is genius". So was buying insurance on British sailing ships that you didn't own! CDS are insurance policies and should have been regulated as such. I don't see how this could have possibly been the objective of the designers. You know, the more I think about it, it SHOULD happen. They all knew what they were getting into, and what the heck, lawyers have to eat too...…"

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Wolfman
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“On a technical level this is genius”. So was buying insurance on British sailing ships that you didn’t own!
CDS are insurance policies and should have been regulated as such. I don’t see how this could have possibly been the objective of the designers.
You know, the more I think about it, it SHOULD happen. They all knew what they were getting into, and what the heck, lawyers have to eat too…