Wall Street Said to Curb Shady CDS Deals

What is the primary concern discussed regarding companies and bond payments?

• Companies are unable to find investors.

• Companies are not issuing enough bonds.

• Companies are defaulting on payments intentionally.

• Companies are paying off debts too quickly.

How do some investors use credit default swaps without having a direct stake?

• By buying stocks instead of bonds.

• By lending money to the companies.

• By purchasing CDS on unrelated deals.

• By investing in their own debt.

What was a proposed solution to restore confidence in the CDS market?

• Government regulation of CDS.

• Voluntary industry rules.

• Increased transparency in trades.

• Mandatory investor education.

In the case involving Blackstone, what was the strategic use of CDS?

• To avoid paying taxes.

• To increase their stock value.

• To ensure a payout from CDS.

• To hedge against their own risk.

How is the speculative nature of CDS compared in the discussion?

• To a game of chess.

• To a lottery ticket.

• To a stock market crash.

• To gambling in Las Vegas.