re: #171 John Neverbend

I don’t have the details of the financing, but I assume that the pay-out from the credit default swap covers the loss they would make on the underlying loan. In other words, they come out flat, not with a profit of $1bn or so.

My question was a “what if”. Nothing prevents them from making a credit default swap that makes it a net payout on a company failing.

I probably could have been more clear about that.