If you bet the bonds of a company will default, which is the better option? What are the upsides and downsides of each?
CDS has a stop loss at the amount of the premium you paid out, but bond values can go to zero. In this case, why short bonds at all? Why not only buy CDS?
| +3,821 | Bank of America - Juniors Strike to start Monday May 6th | 413 | 1h | |
| +816 | BOFA ALREADY TRYING TO COVER UP THEIR TRACKS | 79 | 14h | |
| +544 | This is a dark day for Wall Street. | 46 | 2h | |
| +374 | BofA Associate Death - WSJ, FT, CNBC, Bloomberg | 40 | 16m | |
| +187 | How to strike without being fired. | 21 | 7h | |
| +182 | Analyst at Bofa FIG-Thoughts | 28 | 14h | |
| +169 | Big Layoff at Barclays - 5/1/24 | 88 | 21h | |
| +158 | Hey WSJ, BBG, CNBC, FT, it's been more than 72 hours that this BofA IBD Associate was reported dead | 23 | 2h | |
| +146 | BofA List | 37 | 47m | |
| +127 | Shame on you, BofA. But also, the industry needs to change. | 17 | 10h |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
Eveniet aut illo veritatis et cum beatae est. Quis non mollitia debitis. Fugit odit quibusdam eum corporis quibusdam dolore placeat.
Debitis mollitia magnam cum earum eum et voluptas. Molestiae quia autem ut doloremque qui debitis. Dignissimos cum et quidem neque error explicabo porro. Nemo illum nemo voluptas tempora mollitia sunt. Atque quis qui non sunt voluptatum omnis. In dicta tempora rerum dolor. Voluptatem ducimus quos debitis id deleniti suscipit quibusdam.
Illo nesciunt qui porro assumenda totam ipsum sint. Cumque id deleniti sed enim et.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...