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This is because when one buys protection it is synonymous with selling the reference obligation.
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I suppose it makes sense to buy protection that costs 100% of the stuff you're trying to protect.
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.
And is it worth it to buy protection?
Morgan Stanley bought protection against bond defaults from MBIA, an insurer that guarantees bonds.
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.
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.
Election jitters drove up the cost of buying protection against overnight sterling volatility on Thursday.
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