Post

eggnog slut
@deus01.bsky.social

CDS are mostly standardized since GFC and have either a 100bp or 500bp coupon. They all technically have an "upfront" value which is just to pay for the difference between standard coupon (e.g. 500) and the current par coupon (1000)

eggnog slut
@deus01.bsky.social

If the par spread was lower than the standard coupon then you would get paid to buy protection. coreweave 5y cds spread were like 400 a year ago so you would have gotten paid upfront to buy protection then

Yolonomics
@yolonomics.life

I checked the story of the company, it really is fascinating, I love it! However they should have never done an IPO. These are close to legal heists. Debt at +1000% of equity, no collateral, no nothing if it busts and they cash out millions + dilution. Shareholders should trash that shit.