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I suppose it makes sense to buy protection that costs 100% of the stuff you're trying to protect.
And is it worth it to buy protection?
If sellers are not allowed to buy protection themselves, investors will find it harder to hedge.
Conversely, when investors buy protection against defaults, it is a bearish stance.
The kingpins who control the games funnel some of the proceeds to local politicians to buy protection from the police.
Traders had to pay 80 cents on every dollar to buy protection against Lehman defaulting on its bonds.
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So when you say that you've protected yourself by doing a trade with a hedge fund if you bought protection from a hedge fund, you're hallucinating.
Morgan Stanley bought protection against bond defaults from MBIA, an insurer that guarantees bonds.
Election jitters also drove up the cost of buying protection against overnight sterling volatility.
Q.. Some critics have compared becoming a Yelp advertiser with "buying protection" from the Mafia.
Banks bought protection on credit derivatives from monolines in the form of credit-default swaps.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com