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CDS market and counterparty risk

Is CDS market the next to explode? Imagine that you buy an insurance but the insurance company can't pay you because their counterpary can't pay them either.
What's truly astonishing is the size of this market: The market for these securities is enormous. Since 2000, it has ballooned from $900 billion to more than $45.5 trillion — bigger than the US equity markets, US Treasuries, and Mortgage Securities — COMBINED.


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