 Quote:
Originally Posted by boont
But of course that is not what the report said at all. You re-worded that.The report recounts a situation in which the institutional investor already has protection and "no longer sell companies they feel are about to fail". That is a quite different matter.
b.
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I didn't interpret the quote the same way you did (and after reading it again, I still don't) but no matter. Even using your interpretation you have to assume that speculators don't rush to try to sell a security that is "obviously facing impending failure" . . . this is simply not true.
And besides, why wouldn't an institutional investor in the position you describe still sell the bonds and leave the short CDS position in place?
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