Analysis of information sources in references of the Wikipedia article "Συμβάσεις ανταλλαγής κινδύνου αθέτησης" in Greek language version.
If the fund manager acts as the protection seller under a CDS, there is some risk of breach of insurance regulations for the manager.... There is no Netherlands Antilles case law or literature available which makes clear whether a CDS constitutes the ‘conducting of insurance business’ under Netherlands Antilles law. However, if certain requirements are met, credit derivatives will not qualify as an agreement of (non-life) insurance because such an arrangement would in those circumstances not contain all the elements necessary to qualify it as such.
If a default occurs, the party providing the credit protection - the seller - must make the buyer whole on the amount of insurance bought.
like insurance insofar as the buyer collects when an underlying security defaults ... unlike insurance, however, in that the buyer need not have an "insurable interest" in the underlying security
If a default occurs, the party providing the credit protection - the seller - must make the buyer whole on the amount of insurance bought.
