Credit Default Swaps
In eConned, Yves Smith argues that credit default swaps were/are used to take out insurance-like contracts against financial products in which buyers had no insurable interest. This was related to the financial crisis of 2008 because hedge funds and others allegedly helped produce bad subprime mortgages on purpose so that they could buy insurance on them, and then profit when the home buyers failed to make payments.
Read more about this topic: Insurable Interest
Famous quotes containing the words credit, default and/or swaps:
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