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Unformatted text preview: owned what. They allow us to do two things; they allow the buyer to hedge their bets or they allow the buyer to speculate on outside loans which his essentially a side bet just in case the borrower defaults. Swaps became so popular that in 2008, the SEC estimates that there were about $58 trillion CDS out in the market, which was about 4 times the U.S. GDP....
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This note was uploaded on 11/15/2011 for the course FIN 401 taught by Professor Staff during the Spring '08 term at Miami University.
- Spring '08