Blackstone Made Money on Credit-Default Swaps With This One Weird Trick

By Matt Levine – “The Daily Show” is perhaps a bit harsh. Codere is a small company in a faraway land. This trade, while lovely, was smallish; Blackstone made something like 11 million to 14 million euros on its CDS payout. No widows or orphans were harmed: The only losers here were the people who wrote CDS to Blackstone. Those people were presumably sophisticated, well-informed traders at big banks, and if they are honest with themselves, their reaction to losing on this trade is envy and admiration and possibly tweaking future CDS documentation. more>

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