CDS critics: Have your CDS and eat it

CDS critics: Critics of credit derivatives seem to be battling each other. Some want trading limited to investors who own underlying debt. But now others are blaming creditors who own credit default swaps for being motivated to force companies into bankruptcy – most recently in the cases of AbitibiBowater and General Growth Properties. The arguments directly conflict. Better just to try to ensure the swaps are traded as safely as possible. The first cohort of critics – including some US insuranc...