Re: Trade ideas...lets see what we can come up with
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for those that aren't 100% clear, a CDS is a derivative that pays when an underlying instidution default's on ints debt. so then economic growth is good or demand for these instruments is high, these spreads tend to come in. when risk aversion increases or when underlying institution (typicaly company) balance sheets are at risk, they should blow out.
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when times are tough benchmark spreads increase; bidding interest may or may not cancel out this change.
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