Explain to my neighbours what "CDS" is in the movie "The Big Short" (2015). Who are the "CDS" buyers and sellers in the movie? 

How is the "CDS" priced? How do the "CDS" sellers and buyers make money? 

What role does the "CDS" play in the 2008 subprime crisis? Does it seem odd to you that some of "CDS" buyers do not even own the underlying asset - "CDO" (buying insurance on something you do not own)? Find out how this can occur>Comment on your findings with the use of "CDS".

Answer rating: 100% (QA)

In the movie The Big Short 2015 CDS refers to Credit Default Swaps Credit Default Swaps are financial instruments that were commonly used before the 2008 financial crisis to hedge against credit risk ... View the full answer