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Outstanding CDS on an issuer often, indeed usually, exceeds the total face amount of bonds they've issued. There's no particular reason they need to be linked.
In theory, half the people on this board could insure the other half against my house burning down. One house gets burned down, several hundred people collect against the loss. Same with an issuer defaulting. You don't need to own the bond to buy a CDS.
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Money's just something you need in case you don't die tomorrow.
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