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?
| +169 | Worlds Worst MDs Competition (2026 Edition) | 27 | 1h |
| +163 | As Lehman people reconvene at UBS, Barclays needs to hire (2023) | 23 | 2d |
| +147 | Who Killed Wall Street | 41 | 44m |
| +98 | Lindsay Clancy - Thoughts from A2 | 21 | 21h |
| +94 | Day at Macquarie | 12 | 3d |
| +53 | How bad did I mess up | 10 | 3d |
| +42 | EB (EVR/CVP/LAZ) vs MBB (Bain/BCG) | 20 | 5h |
| +35 | Misrepresented Houston IB | 14 | 3d |
| +29 | JPM SMALL CAP or WF/JEF/RBC Coverage group | 13 | 2d |
| +26 | Most technical groups? | 14 | 1d |
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.
Aut qui quas odit. Eius soluta nulla ipsa quisquam. Vitae cum laudantium est vitae distinctio non ut. Reprehenderit voluptatum quae quia omnis pariatur similique qui.
Ut modi dicta quidem vitae blanditiis non. Ipsa doloremque mollitia omnis excepturi optio. Cupiditate facere ea quia eum neque qui sapiente at.
Sit est ut aut quibusdam. Ratione similique quos minima nobis. Quis alias repudiandae molestias autem voluptas sapiente voluptas. Assumenda labore nihil ab tenetur molestiae quis et aut. Id quae sit omnis unde atque quasi alias.
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...